Return on Investment
The educational investment of studying finance and business was due to the 4 overall need to sustain myself in the near future. The breaking of the circle of poverty was the main thing that led me to choose the subject. The insights on how to run and manage or decide on different businesses were the issue that led to search for the study analysis. This passion to know how businesses are managed and influenced in the provision of different activities was the thing that led to the management of the operation of the firm, Nave and Rubio, (2012). The classification, summarising, classifying, communication and recording of the financial information about the business had increased the job prospects that were supposed to occur. The increasing possibilities of working in the different fields of finance and business were seen to allow the overall improved participation of different activities, Cariole, (2011). The increased employability and improved career development of the study of finance beckoned me to study the subject. This learning will allow the growth and learning possibility of the overall analysis of the changes that could have occurred within the organization.
The cost of tuition for studying the finance subject was seen to average to an amount of 9375 dollars in a year. The completion of the study will require the running of the school course for a period of about four years. This means that the tuition expense that is required to occur in the organization is expected to be the following. The total expense is expected to be 37500 dollars, Nave and Rubio, (2012). The presence that the college is in the urban centre will require the inclusion of a high amount of money for the provision of the finances, Cariole, (2011). The housing or apartments places of staying were expected to incorporate 20-25% of the whole tuition budget. This means that the expense could amount to the following.
| Item | Cost in a year |
| Tuition | 37500 |
| Housing and miscellaneous | 10000 |
| Transportation | 20000 |
| Food stuffs | 5000 |
This will mean that the overall cost of the investment on my education will amount to 56300. The miscellaneous quotation includes the cost of books or interests that will be payable on any loans. The approximation of the overall cost of studying the subject was seen to be attainable during my study duration.
The study of the course will allow me to be proficient in auditing, merchant banking, public practice, investment management, service industries, manufacturing, stock broking, management consulting and taxation. The occupation that I am hopeful to obtain will be the financial manager’s position. The risk of the public service organizations and also private have led to the increased demand on financial management expertise, Cariole, (2011). This involves the accurate projections and reporting, Nave and Rubio, (2012). The financial management position will allow the directing and advancing of the business through the use of the budget plans that will be presented to the management. The forecasting of expenditures and revenues will allow the running of the firms operation in order to allow the participation of the overall activities of the firm. The finance manager have been seen to acquire high level of salaries due to the over knowledge acquisition that they have obtained.
According to statistics the number of emerging businesses has grown up immensely. This means that the number of jobs that could be seen to be presented in the job market could rise to 527100 jobs. This will include the capital and financial markets that will allow the provision of the required amount for service provision. The overall payment of a financial manager according to statistics in 2010 was seen to be 49.96dollars in an hour. The presence of the individual being able to obtain such an amount of money will enable the pursuance of the degree with minimal problems. The acquisition of the qualification will allow me to earn 103910 dollars in a stipulated year.
The presence that the job opportunity will require the use of finances for personal upkeep and formulation of errands will lead to the overall search for the provision of the quality services for analysis. The amount of money that is expected to be spent on meals and restaurants is supposed be about 128 dollars, market around 10 dollars, transportation 5000 and miscellaneous1900 dollars, Nave and Rubio, (2012). This will culminate to the overall cost of living of about 7038 dollars. The presence that the salary quotient in a month is expected to be 103910 dollars will mean that the operation of the firm will be proficient in the provision of the quality services.
The return on investment is calculated by the use of the following formulae
- O. I. = (96872- 4541)/4541= 20%
The gain of the job= 103910-7038= 96872
The cost per month for learning or investment = (56300/12) = 4541
Payback period= 56300/ (96872- 4541) =0.6
The acquisition of the job will allow ne to pay back the investment in a period of less than a year. This will mean the paying up of the cost in a period of about seven months.
Reference
Cariole, A. (2011): Capital structure decisions during a firm’s life cycle. Small Business Economics, 37(1), 107-130. Retrieved from http://dx.doi.org/10.1007/s11187-009-9229-z
FAMA, E. (2010): Luck versus Skill in the Cross-Section of Mutual Fund Returns. Journal of Finance, 65(5), 1915-1947
Gruber, M. J. (1997). Modern portfolio theory, 1950 to date: Journal of Banking & Finance, 21(11), 1743-1759. Retrieved from http://pages.stern.nyu.edu/~eelton/papers/97-dec.pdf
In telecom (Producer) (N.D.): Capital budgeting [Video File]. Retrieved from http://searchcenter.intelecomonline.net/playClipDirect.aspx?id=4870EEC7664070BB9D6744FDA7325EE48937A8D6C2046957D894C3572333E0B94E4E0FADFA493E372EF9C0293DDF74D7
Nave, J., & Rubio, G. (2012): The Cross Section of Expected Returns with MIDS Betas. Journal of Financial & Quantitative Analysis, 47(1), 115-135
