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Q466. A state agency is considering a childcare subsidy that would facilitate single parents attainment of college degrees. The benefit would cost $10k per recipient per year for four years. The expectation is that individuals with a college degree will earn more than individuals without a college degree. This means that they generate more revenue in the form of income tax. They are also less likely to require government assistance of various kinds — call this amount A. Assume current rules limit us to a ten year time horizon. Assume the average salary difference between non-college grads and college grads is D (but get the real info here) and that the marginal tax rate can be found here. Assume a 5% discount rate. For the purposes of this problem, we will ignore inflation.