Question

i want to make a financial model whether or not its worth going to grad school. can you provide a 20 year template and show what factors into the right decision. thank you

Answer 1

Any business if it wants to survive for long quality of services provided must be of good quality. Management must not compromise on quality of education services provided.

Opportunity cost:

Graduate school can take you away from full-time work, so you have to take into account your lost wages over the time you’re enrolled in the graduate program

Capital Cost:

          Graduation school requires initial investment depending upon size of Graduation school. In initial stages there may be no profit due to less students and huge depreciation on this investment.

Earnings of graduate school:

          Graduation school has many revenue sources. Graduation school should start other program related to graduation program which can add additional weight to resume of students studying there. Graduation school must conduct practical program. It must start providing master education and other higher education according to interest of students. Management must also try to provide placement. Providing Placements will attract many new students.

1. Tuition fee of Graduation
2. Practical program fee
3. Placement fee
4. Examination fee
5. Revenue from sale of books, uniform, etc.
6. Canteen revenue   
7. Fee from higher education

                                               

Expenditure of graduate school:

Highest expenditure of graduation school is teaching staff expenditure next comes maintenance charges and other miscellaneous expenditure.

If teaching expert expenditure is taken care properly it can be reduced.

One of expenditure which is compulsory is advertisement. It is worth to do advertisement because it one which will bring new students

For graduation school initially there will be no profit but soon it will increase and chances of no increase is very less. It will become cash cow in 3 to 4 years of time

Do cost benefit Analysis with opportunity cost and profit of graduation school. Mostly profit of Graduation school will be higher