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[quote=Anonymous]I’m the longwinded poster asking the financial questions above. I understand that tuition is high, but it still doesn’t make sense.  Let’s think of this in terms of a business rather than a school for minute. Safe to say that the school needs a certain enrollment level - probably 90% of its projected 2500 students - to break even. After all, the fixed costs (the building, renovations, technology) don’t get cheaper because there are fewer students. The incremental costs (teachers, supplies) scale somewhat based on enrollment for sure.  But if an investor wants a competitive return, say 7%, what kind of margins do these guys need to run? Let’s say it takes four or five years to get to 2500. It’s already well outside of the allowable investment time horizon of legit private equity firms. They’d want to be fully exited in five or six years.

So if not private equity, let me ask the question again...where is that kind of money coming from? It’s fully defendable if the “investor” is a nation and the funds are coming from either a commerce department, education department or defense department that identifies a strategic benefit to educating wealthy youth is Washington DC.  In other words, their return is not financial like normal investors but ideological, like someone who is playing the 100 year game rather than the five year game.

Sound like any country in particular?

Not trying to be paranoid or to spread conspiracy theories, but this seems to be painfully obvious.
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