40 Chapter 3: Investment analysis Table 3.2: Projected benefits and costs, student perspective 1 2 3 4 5 6 Year Gross higher earnings to students (millions) % active in workforce* Net higher earnings to students (millions) Student costs (millions) Net cash flow (millions) 0 $7.8 6% $0.5 $46.0 -$45.5 1 $8.2 19% $1.5 $0.2 $1.3 2 $8.7 31% $2.7 $0.2 $2.5 3 $9.1 45% $4.1 $0.2 $3.9 4 $9.6 62% $5.9 $0.2 $5.7 5 $10.0 95% $9.5 $0.2 $9.3 6 $10.4 95% $9.9 $0.2 $9.7 7 $10.9 95% $10.3 $0.2 $10.1 8 $11.3 95% $10.7 $0.2 $10.5 9 $11.7 94% $11.1 $0.2 $10.9 10 $12.1 94% $11.4 $0.2 $11.3 11 $12.5 94% $11.8 $0.2 $11.6 12 $12.9 94% $12.1 $0.2 $12.0 13 $13.3 94% $12.5 $0.2 $12.3 14 $13.6 94% $12.8 $0.2 $12.6 15 $14.0 93% $13.0 $0.2 $12.9 16 $14.3 93% $13.3 $0.0 $13.3 17 $14.6 93% $13.5 $0.0 $13.5 18 $14.8 93% $13.7 $0.0 $13.7 19 $15.1 92% $13.9 $0.0 $13.9 20 $15.3 92% $14.0 $0.0 $14.0 21 $15.4 92% $14.1 $0.0 $14.1 22 $15.6 91% $14.2 $0.0 $14.2 23 $15.7 91% $14.2 $0.0 $14.2 24 $15.7 90% $14.2 $0.0 $14.2 25 $15.8 90% $14.2 $0.0 $14.2 26 $15.8 89% $14.1 $0.0 $14.1 27 $15.7 89% $14.0 $0.0 $14.0 28 $15.7 88% $13.8 $0.0 $13.8 29 $15.6 88% $13.7 $0.0 $13.7 30 $15.5 87% $13.4 $0.0 $13.4 31 $15.3 86% $13.2 $0.0 $13.2 32 $15.1 85% $12.9 $0.0 $12.9 33 $14.9 84% $12.6 $0.0 $12.6 34 $14.7 83% $12.2 $0.0 $12.2 35 $14.4 82% $11.9 $0.0 $11.9 36 $14.1 81% $11.5 $0.0 $11.5 37 $13.8 80% $11.0 $0.0 $11.0 38 $13.4 79% $10.6 $0.0 $10.6 39 $13.1 78% $10.2 $0.0 $10.2 Present value $195.9 $48.1 $147.8 * Includes the “settling-in” factors and attrition. Source: Lightcast impact model. Payback period (years) 7.3 Benefit-cost ratio 4.1 Internal rate of return 16.4%
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