- Time: 2014 - Organization: College(undergraduate) - Class: Cost and Benefit Analysis (Economics) - Project description: This slides are from my undergraduate course 'Cost and Benefit Analysis'. For the final project, I chose a topic of pursuing career whether in the United States or Korea. The slide includes tangible and intangible benefit of pursing career in the United States and calculation of net benefit, real net benefit, and present value for 10 years with limited assumptions. It also includes sensitivity analysis on discount rate and expected value analysis.

1. CostBenefitAnalysis
-PursuingacareerintheUnitedStates-
YeonKyung Lee
ECON 335
05/08/2014

2. Table of Contents

4. Why did I choose this topic?

6. Standing Individual
Main Set
Pursuing career in finance related field
in the United States
Alternative
Pursuing career in finance related field
in South Korea

8. 3,215,000
9,1220
500000
1000000
1500000
2000000
2500000
3000000
3500000
USA South Korea
Number of Job Openings in Finance Field (number)
- Identifying job opportunities

9. 6.7%
3.2%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
USA South Korea
Unemployment Rate (Percentage)
- Analyzing Labor Market Condition

10. $54,857.8
$40,335.1
$40,200.0
$22,940.7
$0.0
$10,000.0
$20,000.0
$30,000.0
$40,000.0
$50,000.0
$60,000.0
USA South Korea
Average Annual Income ($)
- Analyzing Future Monetary Benefits
Average
Entry-Level

11. $49,544.0
$26,043.0
$0.0
$10,000.0
$20,000.0
$30,000.0
$40,000.0
$50,000.0
$60,000.0
USA South Korea
Average Annual Spending for twenties – thirties ($)
- Analyzing Future Monetary Costs

12. 65,000
20,000
For
Master’s
Degreeor
higher
H1BVisa
65,000
124,000
172,500
0
50,000
100,000
150,000
200,000
Number of applicants
Quarter
2013-2014
2014-2015
52.41%
37.68%

15. Assumption

16. Cost Benefit Net Benefit
($)
(B-C)
Real
Net
Benefit
($)
Present
Value
($)
Time
Period
(Year)
Consumption
($)
Immigration
Processing
Fee ($)
Income
($)
2015 49,544 2,225 40,200 -11,569 -11,916 -11,513
2016 49,544 40,200 -9,344 -9,624 -8,984
2017 49,544 40,200 -9,344 -9,624 -8,681
2018 49,544 2,225 40,200 -11,569 -11,916 -10,384
2019 49,544 40,200 -9,344 -9,624 -8,103
2020 49,544 54,857 5,313 5,397 4,390
2021 49,544 10,000 54,857 -4,687 -4,761 -3,742
2022 49,544 54,857 5,313 5,397 4,099
2023 49,544 54,857 5,313 5,397 3,960
2024 49,544 54,857 5,313 5,397 3,826
NPV -35,133

17. Time period
(Year)
Cost Benefit Net Benefit
($)
(B-C)
Real
Net Benefit
($)
Present Value
($)Consumption
($)
Income
($)
2015 26,043 22,940 -3,103 -3,137 -3,031
2016 26,043 22,940 -3,103 -3,137 -2,929
2017 26,043 22,940 -3,103 -3,137 -2,830
2018 26,043 22,940 -3,103 -3,137 -2,734
2019 26,043 22,940 -3,103 -3,137 -2,641
2020 26,043 40,335 14,292 14,832 12,066
2021 26,043 40,335 14,292 14,832 11,658
2022 26,043 40,335 14,292 14,832 11,264
2023 26,043 40,335 14,292 14,832 10,883
2024 26,043 40,335 14,292 14,832 10,515
NPV 42,221

19. ($40)
($30)
($20)
($10)
$0
$10
$20
$30
$40
$50
1% 11% 21% 31% 41% 51% 61% 71% 81% 91%
NPV
Thousands
Discount Rate
Alternative 1
Alternative 2

20. Expected
Value Analysis
Total
Benefits
Real
Total Benefits
Benefit Cost
18,090.0 51,769 -$33,679.0 -34689.37
18,090.0 49,544 -$31,454.0 -32397.62
18,090.0 49,544 -$31,454.0 -32397.62
18,090.0 51,769 -$33,679.0 -34689.37
18,090.0 49,544 -$31,454.0 -32397.62
24,685.7 49,544 -$24,858.4 -25251.11193
24,685.7 59,544 -$34,858.4 -35409.11193
24,685.7 49,544 -$24,858.4 -25251.11193
24,685.7 49,544 -$24,858.4 -25251.11193
24,685.7 49,544 -$24,858.4 -25251.11193
NPV= -254,465.87

23. Limitations

24. Thank you