INVESTMENT ANALYSIS
Investment analysis is the practice of comparing the costs and benefits of an investment to determine whether or not it is profitable. This study considers A&M–Texarkana as an investment from the perspectives of students, taxpayers, and society.
Student perspective Students invest their own money and time in their education to pay for tuition, books, and supplies. Many take out student loans to attend the university, which they will pay back over time. While some students were employed while attending the university, students overall forewent earnings that they would have generated had they been in full employment instead of learning. Summing these direct outlays, opportunity costs, and future student loan costs yields a total of $28.7 million in present value student costs. In return, students will receive a present value of $118.6 million in increased earnings over their working lives. This translates to a return of $4.10 in higher future earnings for every dollar that students invest in their education at A&M–Texarkana. The corresponding annual rate of return is 18.1%.
Taxpayer perspective Taxpayers provided $26.3 million of state funding to A&M–Texarkana in FY 2018-19. In return, taxpayers will receive an estimated present value of $24.1 million in added tax revenue stemming from the
Executive summary
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