Introduction
This paper will discuss the projected return on investment for completing college education and projected future employment. It would be divided in two parts for analyzing Return on Investment (ROI) carefully.
Part 1
Motivational Factors behind Course Selection
Two aspects such as interest in finance and recent financial crisis made me to peruse financial management for the further studies. I conducted self-assessment for analyzing interest, values, skills/aptitudes, preferred environment etc. This helped me to determine my analytical skills and knowledge about different financial concepts that are crucial to peruse the financial management degree course. Beside this, my past performance in finance related subject was also high in compare to other that also ensured me for this course selection. In addition, the worst impact of financial crisis that shocked the economy also persuaded me for this degree course selection (Pieper, 2012). I desired to enhance my skills and knowledge in terms of finance and to contribute this for the betterment of global economy.
Financial crises had influence on performance of businesses and economies negatively that increased inflation and influenced lives of many people accordingly. It made me to persuade this decision for my career (Beblavý, Cobham & Ódor, 2011). Expanse analysis was also prepared by me to determine financial feasibility of this decision.
It is stated below:
Cost Structure for Education
|
Cost Heads |
Expected Cost (£) |
|
Tuition Fee |
18000 |
|
Modules fee |
1500 |
|
Coursework Submission |
450 |
|
Administrative fee |
450 |
|
Total |
20400 |
Loan Amount and Interest Payment Annually
|
Year |
Education Loan Amount |
Current Interest Rate (1.5%) APR (Interest Payment Annually £) |
|
1 |
6000 |
90 |
|
2 |
6000 |
90 |
|
3 |
6000 |
90 |
|
|
Total |
270 |
(Student Loans Company, 2013)
Total Education Cost
|
Cost heads |
Amount (£) |
|
Cost Structure for Education |
20,400 |
|
Interest Payment Annually |
270 |
|
Total |
20,670 |
Part 2:
Analysis of Return
For conducting research over financial analyst’s occupation, there are several sources investigated by me. In order to gain practical knowledge about this occupation, job description of financial analyst offered by several investment banks is analyzed. For example, it is identified that the main duty of this occupation is to compile and analyze financial information for an organization. In this way, one is responsible for preparing and analyzing monthly, quarterly, and annual reports, while ensuring the accurateness of financial information. In addition, it is also determined that this position is highly responsible and complex that requires competent knowledge and skills in the field or in a related area (Pieper, 2012).
At the same time, demand and supply side of this occupation is also investigated. After financial crises, demand of financial analyst is significantly decreased in compare to previous time, but at the same time, requirement of skills and knowledge is enlarged. Due to this, demand side of this occupation is not so strong in regard to present conditions. At the same time, the total work force of UK is 31.9 million and the unemployment rate 7.8% that also signifies the competition in the supply side for this financial analyst’s occupation (CIA, 2012). But at the same time, the performance of investment banks is improved from past few years and due to this, there are huge possibilities of increasing the financial analyst’s seats. This may increase several other opportunities for the occupation of financial analyst.
In addition, it is also determined from occupational research that the range of financial analyst’s basic salary is £22,000 – £30,000 plus potential bonuses (Prospects UK, 2013). After determining occupational research for financial analyst, following is depicted the expected salary structure and cumulative cash inflows after three years:
|
Year |
Net Cash Flow (£) (Expected Salary) |
Cumulative Net Cash Inflow (£s) |
|
0 |
-20,670 |
-20,670 |
|
1 |
27,000 |
6330 |
|
2 |
32,000 |
38330 |
|
3 |
37,000 |
75330 |
(Rasmussen, Eichorn, Barak & Prince,)
Payback Period = Y + (A/B), Where
Y= Total number of years before the payback or with negative cumulative cash flow
A= Cumulative cash flow at the end of the period Y
B= Actual Cash Flow during the period after Y
0 + (20670)/27000 = .765 year = 9 months