On human capital investment of financial decisions in high and new tech enterprises based on net present value method

The decision to attend college is a question of human capital investment, yet resources to help practitioners frame human capital investment decisions remain elusive and few include the “gold standard” of finance: net present value (NPV). Can one discuss human capital investment with an average adolescent using a traditional NPV approach? Motivated by this question, we presented 10 barriers to maximizing education–career NPV (e.g., clarity of costs, immature adolescent brains, individual discount rates). We outline an iterative, research-based approach to education–career investment, including framing the conversation, calculating paired NPVs, and structuring the decision. This multistep framework leverages practitioner expertise to help adolescents consider important lifelong financial wellness implications of human capital investment.

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The Economic Benefits of Malaysian University Degrees

IIUM Journal of Educational Studies ◽

10.31436/ijes.v7i1.197 ◽

2020 ◽

Vol 7 (1) ◽

pp. 15-25

Author(s):

Mohd Nahar Mohd Arshad ◽

Nur Nadhira Baharuddin

Keyword(s):

Human Capital ◽

Capital Investment ◽

Net Present Value ◽

Economic Benefits ◽

Degree Programs ◽

Educational Investment ◽

Present Value ◽

Public And Private ◽

Net Returns ◽

The Individual

AbstractThis study analyzes the net returns of educational investment in Malaysia using the net present value approach. The estimations consider the tuition payments of nine different bachelor degree programs of public and private universities in Malaysia and the forgone earnings while undertaking the degree programs as the cost of investments in human capital. The returns to education investment are based on the expected income accrued by the individual over the employment period until retirement. Under the assumptions that an individual would work until the retirement age of 60 years and a discount rate of 4 percent, the estimations show that holding a computer science degree from Universiti Sains Malaysia would give the highest net present value. Holding a medical degree, in general, would give the lowest net returns on educational investment as compared to the other selected programs. The net returns are sensitive to the costs of education, earnings and the duration of undertaking the degree programs.Keywords: Human capital investment, net present value, private rate of return, educational investment, Malaysian degree programmes

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What Makes Employees Productive and Have High Performance? Human Capital Investment in Universities

Asian Journal of Education and Social Studies ◽

10.9734/ajess/2020/v11i130281 ◽

2020 ◽

pp. 21-36

Author(s):

Fitri Nurmahmudah ◽

Eka Cahya Sari Putra

Keyword(s):

Human Capital ◽

Capital Investment ◽

High Performance ◽

Evaluation Method ◽

Net Present Value ◽

Pearson Correlation ◽

Human Capital Investment ◽

Correlation Technique ◽

And Performance ◽

High Level

The study describes the evaluation results concerning the improvement of the education levels among the employees of a university in Indonesia by making an investment in education. The study is aimed at investigating the employees’ productivity and performance after making an investment in education. This study with evaluation method using discrepancy model. The sample of the study consisted of 255 non-academic university employees. Data were collected by way of a questionnaire on Guttmann scale. The questionnaire was validated by using logical and empirical validation by a Pearson correlation technique and reliability by KR-20 technique. The data analysis with descriptive. To calculate the capital human investment, the human capital investment formula was used for finding payback period, benefit/cost ration, return-on-investment, net-present-value, and internal-rate-of-return. The results of the study showed that the employees who made human capital investment in education were able to increase their productivity and performance as their insights, knowledge, and skills improved. The research findings were able to give insights to leaders in high-level institutions or government institutions that investing in education is truly essential, needs more attention, and needs to be done by employees.

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