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Drive Growth: Education Better Education Improves General Labor Quality and Enables Specialization For More Efficiency KP www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 377 Education = High Long-Term ROI* Investment Each $1 of Government Spending Could Generate Up to $3 of Incremental Tax Return USA Inc. Net Present Value (NPV) for an Individual** Obtaining Secondary / Higher Education, 2005 NPV = $100,119 wy B1A0,000 ROI=299% £ = $120,000 ------------------------------------- | 3 - - -- --- = Unemployment Effect 2 [e) w § $100,000 ------------------------------------- Eo ~~ ~~~ 5 2 3% 23 ge9000 NPV =$32,257....ss—“‘(‘“‘(‘<i‘<éiamr 1 Social Insurance Tax zs , L Revenues £u ROI = 109% ec. © 2 $60,000 =, (| —— £2 ox = Income Tax Revenues 35 $40,000 pe no iy] > 2 ~~ 52 $2000 (i °|-.m-- 3 8 = Public Foregone Tax ag $0 Revenues @ 2 ° = .$20000 [i --------- i... a s = Public Direct Cost a BAGO) ao mex - me men ws nen = mn mn me me ne a ET a TE = Secondary Education Higher Education Note: * ROI (return on investment) calculated as NPV of future incremental tax revenues divided by cost for government to support an individual for education. **Limited to male samples, female samples tend to have a KP lower public NPV. Source: OECD. (@ EB) www.kpcb.com USA Inc. | What Might a Turnaround Expert Consider? 378 HOUSE_OVERSIGHT_021030