Analysis of Individual Investment on Higher Education based on the Net Present Value Method

ABSTRACT

Education investment is the main form of human capital investment, especial higher education investment. The thesis mainly made an empirical analysis of individual investment on higher education by using the net present value method in financial management. First, we analyze the cost proportion of higher education investment, including direct cost and indirect cost. The income of higher education mainly includes economic benefits. On basis of this, we establish net present-value economic model of personal higher education investment to quantify and measure the investment ration economic effect, Finally, the conclusion that it is feasible for individuals to invest on higher education is drawn by carrying on the empirical analysis of actual cases.

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