Return on Investment Ashford

Topics: Human resource management, Management, Interest Pages: 5 (864 words) Published: May 31, 2015

Return on Investment-Education Funding
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BUS 401 Principles of Finance

Return on Investment-Education Funding
The need to sustain a career and a future beyond the average hourly employment is what lead to the decision to study and work in business administration. The first step in the journey was to choose an educational institution where the concepts and philosophies of business administration could be learned. The second step in the journey will involve acquiring a position with a reputable organization where learned skills can be applied to daily operations. Overall the goal is to realize a return on the investment made in the education of business administration. Explanation of Decision

The decision to enter into the field of business administration was made primarily as a response to no longer wanting to work for average hourly wages. The field of business administration encompasses a wide variety of fields including management of people, accounting, finance, marketing, and human resources which opens the door to more job opportunities. A degree in business administration improves the aspect of employability and ensures the possibility of higher wages and more growth opportunities. An education, regardless of the subject, does not come without expense. Summary of Expenses

The expense of a four-year college education includes tuition, books, fees, housing, meals, transportation, and personal expenses. The average tuition, including books and fees, for a four-year degree in business administration at a private for-profit college is $46,272 not including interest (National Center for Education Statistics, 2012). The average interest rate for student loans will depend on whether the loans are federal, what type of federal loan, or private. For the purposes of this paper, we will assume all student loans are federal direct and were taken between July 2013 and July 2014; therefore, the interest rate on all student loans will be 3.86% (Federal Student Aid, 2015). See Table 1 for an amortization of student loans based on a ten year payback. The cost of housing, meals, and transportation will vary depending on choices made for each; but the average cost combined for a four-year degree is $9830 (National Center for Education Statistics, 2012). Table 1. Annual Amortization of Student Loans

Beginning Balance
Ending Balance
Note. From Amortization Calculator, by Copyright 2015 by Desired Occupation and Compensation
While a specific path has not been chosen, the notion of working in the human resources field is appealing. Human resources managers typically plan and coordinate all aspects of employment at an organization to include recruiting, interviewing, hiring, and benefits. The employment of human resources managers is expected to increase by approximately 13% over the next ten years, and, according to the Bureau of Labor and Statistics, a human resources manager with a four-year degree can earn an average of $99,720 annually (Bureau of Labor Statistics, 2014). Steady growth in the human resources industry could mean a better opportunity for employment and growth.

Return on Investment
Return on investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments (Beattie, 2015). To calculate ROI cost is subtracted from gains and...

References: Beattie, A. (2015). FYI on ROI: A Guide to Calculating Return on Investment. Retrieved from
Bureau of Labor Statistics. (2014). Human Resources Managers. Occupational Outlook
Federal Student Aid. (2015). Interest Rates and Fees. Retrieved from
National Center for Education Statistics. (2012). Average undergraduate tuition and fees and
room and board rates
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