Analysis of the Return on Investment and Economic Impact of Education

TABLE 3.4: Projected benefits and costs, taxpayer perspective

BENEFITS TO TAXPAYERS (MILLIONS)

STATE AND LOCAL GOV’T COSTS (MILLIONS)

NET CASH FLOW (MILLIONS)

YEAR

0 1 2 3 4 5 6 7 8 9

$30.3

$84.8

-$54.5

$1.8 $2.5 $3.9 $5.9 $9.7

$0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0

$1.8 $2.5 $3.9 $5.9 $9.7

$10.0 $10.4 $10.7 $11.0 $11.4 $11.7 $12.0 $12.3 $12.6 $12.8 $13.1 $13.4 $13.6 $13.8 $14.0 $14.2 $14.4 $14.5 $14.6 $14.7 $14.8 $14.9 $14.9 $14.9 $14.9 $14.9 $14.8 $14.7 $14.6 $14.5 $14.3 $14.1 $13.9 $13.7 $13.4 $13.1 $12.8 $12.5

$10.0 $10.4 $10.7 $11.0 $11.4 $11.7 $12.0 $12.3 $12.6 $12.8 $13.1 $13.4 $13.6 $13.8 $14.0 $14.2 $14.4 $14.5 $14.6 $14.7 $14.8 $14.9 $14.9 $14.9 $14.9 $14.9 $14.8 $14.7 $14.6 $14.5 $14.3 $14.1 $13.9 $13.7 $13.4 $13.1 $12.8 $12.5

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

$3.8 $1.0

$3.8 $1.0

Present value

$419.2

$84.8

$334.4 14.8%

Internal rate of return

Benefit-cost ratio

4.9 9.0

Payback period (no. of years)

Source: Emsi impact model.

3 0

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