). Gridiron University is a private university. A accessful alumnus has recently donated $1,000,000 Gridiron for the purpose of funding a "center for e study of sports ethics." This donation is condi- onal upon the university raising matching funds ithin the next 12 months. The university administra- rs estimate that they have 50% chance of raising the ditional money. How should this donation be ac- punted for?

). Gridiron University is a private university. A accessful alumnus has recently donated $1,000,000 Gridiron for the purpose of funding a "center for e study of sports ethics." This donation is condi- onal upon the university raising matching funds ithin the next 12 months. The university administra- rs estimate that they have 50% chance of raising the ditional money. How should this donation be ac- punted for?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Alvin Yu was born on January 1, 1988. On Jan. 1 1989, his father starts a fund that is intended to help him in two ways. The fund is to be established by a payment of 2,000 on Janl, 1989 and each Jan. 1 thereafter up to Jan 1, 1998. One purpose is to provide his college education; it is provided that 3,000 shall be withdrawn for this purpose for each year for 5 year starting at the boy's 18th birthday. The remainder of the fund is accumulated until Juan is 30 yrs. old and is to be paid to him to help him purchase a house. If the fund earns 10%, how much will be paid to Juan on his 30th birthday? DRAW THE CASH FLOW DIAGRAM.
Round your final answers to two decimals places. Show complete solution.
Please answer using the methods or patterns of comparison. Thank You!
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A UAB graduate donates $500,000 to the School of Engineering to fund student scholarships indefinitely. UAB's investments historically average 8%. UAB decides to delay issuing the scholarships for 5 years to increase the funds available. The additional scholarship funding this delay allows UAB to provide each year compared to the funding available if UAB started providing scholarships immediately is most nearly: O $9000 O $19,000 $40,000 $59,000
A company that makes clutch disks for race cars has the annual net cash flows shown for one department. Year NCF, $1000 0 −65 1 30 2 84 3 −10 4 −12 (a) Determine the number of positive roots to the rate of return relation. (b) Calculate the internal rate of return. Is there a negative root? How is it treated? (c) Calculate the external rate of return using the return on invested capital (ROIC) approach with an investment rate of 15% per year (as assigned by your instructor, solve by hand and/or spreadsheet).
27) For the following alternatives, (a) find the maximum cost you can spend on alternative A to break even with alternative B if the interest rate is 10% per year. (b) repeat A following expected lives, 5, 8, 10, 12, 15 years using Spreadsheet and Goal seek tool.
110 0 Le000 & (0) A 200 B 3000 2000 らoo0 2800 5000 9f MARR=SI. MARR=81. O x & Y ? MARR = 101 Initial Cost Annual benefit 95|120 Sal vage Value 50 150 use bul libe DO Nothinglon) 3. 200 700 6 yean 12yng
Demand for a new product will decline as competitors enter the market. If interest is 10%, what is an equivalent uniform value?
Consider these two alternatives.Alternative A Alternative BCapital investment OMR 6000 7500Annual revenues OMR 1800 2250Annual expenses OMR 500 750Estimated market valueOMR1200 1600Useful life 10 10MARR 12% 1. Recommend which alternative should be selected.2. How much capital investment of the expensive alternative have to vary so that theinitial decision would be reversed.
The first cost of a fairly large flood control dam is expected to be $5 million. The maintenance cost will be $60,000 per year, and a $100,000 outlay will be required every 5 years. At interest of 10%, find the EUAC of the dam project.
None