USE THE INFORMATION BELOW TO CALCULATE THE NET PRESENT VALUE, THE RETURN ON INVESTMENT, AND THE PAYBACK PERIOD.

1. A five-year program with 100 annual participants, funded by the IRS training budget starting at $500K in 2024.

2. Costs include director salary, participant stipends, facilities, training materials, and overhead.

3. Financial viability is evaluated using Net Present Value (NPV), Return on Investment (ROI), and Payback Period.

4. The model provides an initial framework to be refined with the latest data as program details are finalized.

Explanation:

An explanation of the economic model for funding an IRS career leadership program:

Structure of the Model: - 5 year financial projection from 2024-2028 - Assumes a 3% annual inflation rate based on recent economic trends - 100 participants per year, based on expected demand and capacity constraints - Program located in Washington D.C. to leverage existing IRS facilities and partnerships

Revenue Sources: - IRS training budget allocation - Baseline funding of $500,000 in 2024, projected to grow at 5% annually based on historical budget trends and priority of program - Formula for 2024: =500000 - Formula for subsequent years: =previous_year_funding*1.05

Costs: - Program Director Salary - Starts at $150,000 in 2024 based on market rates for similar positions, projected to grow 3% annually with inflation - Formula for 2024: =150000 - Formula for subsequent years: =previous_year_salary*1.03

- Participant Stipends - $5,000 per participant to cover living expenses during the program - Assumes 100 participants per year based on program capacity - Formula: =5000*100

- Facilities and Equipment - $50,000 in 2024 to cover classroom space, technology, and supplies - Projected to grow 3% annually with inflation - Formula for 2024: =50000 - Formula for subsequent years: =previous_year_cost*1.03

- Training Materials and Instructors - $100,000 in 2024 to develop curriculum and engage subject matter experts - Projected to grow 3% annually with inflation - Formula for 2024: =100000 - Formula for subsequent years: =previous_year_cost*1.03

- Administrative Overhead - Estimated at 10% of total direct costs - Covers program support functions like HR, IT, legal, finance - Formula: =SUM(program_director_salary, participant_stipends, facilities_and_equipment, training_materials_and_instructors)*0.1