0, 000 of capital replacement at
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The will of a wealthy philanthropist left P5, 000,000 to establish a perpetual charitable
foundation. The foundation trustees decided to spend P1, 200,000 to provide facilities
immediately and to provide P100, 000 of capital replacement at the end of each 5 year
period. If the invested funds earned 12% per annum, what would be the year end
amount available in perpetuity from the endowment for charitable purposes?
(I ONLY NEED CASHFLOW DIAGRAM PLEASE DRAW IT NOT DIGITAL!)
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