Is It Really Worth It To Go To College At UW-Superior? The table below compares rates of return on invested capital between earning a bachelor’s degree at UW-Superior and average annual rates of return on alternative capital investments such as U.S. Treasury Bills, long-term Treasury Bonds, and common stocks (Brealey, 2007).
Table 5: Comparison of Internal Rate of Return
Investment
Percent of Return on
Sum of Education
Premium Payments
Invested Capital
Bachelor’s Degree from UW-Superior No part-time employment and no student loans
10.76%
$ 977,397.16
No part-time employment and student loans
11.48%
$1,086,144.00
Part-time employment and no student loans
14.43%
$1,030,142.16
Alternative Capital Investments Treasury Bills (1928-2018)
3.43%
Treasury Bonds (1928-2018)
5.10%
Common Stocks (1928-2018) 11.36% Wisconsin Tax Payers Return on Investments in UW-Superior Education For Bachelor’s Degree 4.19%
$11,125,224.00
Our conclusion is that going to college at UW-Superior to earn a bachelor’s degree is equivalent to an investment whose IRR is significantly higher than average returns on fixed income securities, and is on a par with average rates of return on investments in equities. Even though equities investments come close to the IRR of a college degree from UW-Superior, the investment in one’s college education, particularly at UW-Superior, bears less risk and pays higher yields to maturity over time.
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To access to the full report including appendices, visit uwsuper.edu/econimpact
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