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Investment Valuation of a Graduate Diploma for Teachers Implications to Career Advancement in the Academe and Education Management
JUAN APOLINARIO C. REYES, MS
Journal Title:Asia Pacific Journal of Education, Arts and Sciences
Abstract
This is a case study on the Return on
Investment (ROI) of a graduate diploma for the faculty
members of the College of Education, Arts and Sciences
of Lyceum of the Philippines University Batangas. The
ROI model for economic valuation was based on the
study done by Reyes (Reyes, 2013). This model
constructed the revenue function based on per hour rate
increase, semestral loading, and other incentives that
come with a graduate degree. That study showed that
for a Masters degree, ROI after 10 years of
employment is 0.66. For a Phd it is 4.42. The present
study looked into the opportunity cost of an investment
in a graduate degree by obtaining the ROI of
alternative investments that can be had for the same
capital devoted to finish a graduate degree. These
alternative investments were BPI time deposit, Meralco
stocks, investment in gold, and investment in a 3 × 1
square meter cemetery plot. The performance of these
alternative investments for the last 10 years was
analyzed. The revenue functions were constructed
using a simple linear regression model. The revenue
function and the initial investment which was set equal
to the total matriculation fees to finish a graduate
diploma yielded the ROI for each of the alternative
investments. The results are: BPI time deposit 1.31,
gold 1.08, Meralco Stocks 1.16, and cemetery plot 0.33.
This makes a Masters degree a less attractive
investment in comparison with time deposit, Meralco
stocks, and gold. But to earn a Phd is worth its time
and money. A faculty can recover his investment in 2.5
years, and he stands to earn an ROI of 4.42 in a 10-
year period.
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