A Company Engineering Department would like to establish an endowment fund to be able to build, maintain and operate a state-of-the-art unit operations and dynamics laboratory. It is estimated that an annual amount of $94,000 is required every year for operations and an initial investment of $860,000. Assuming an interest rate of 4% per year (compounded annually) how much money should the department set as a goal for a fundraising campaign for the endowment fund? If only ½ of the possible funds were raised how long would it be before the endowment ran out
A Company Engineering Department would like to establish an endowment fund to be able to build, maintain and operate a state-of-the-art unit operations and dynamics laboratory. It is estimated that an annual amount of $94,000 is required every year for operations and an initial investment of $860,000. Assuming an interest rate of 4% per year (compounded annually) how much money should the department set as a goal for a fundraising campaign for the endowment fund? If only ½ of the possible funds were raised how long would it be before the endowment ran out
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 6E
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A Company Engineering Department would like to establish an endowment fund to be able to build, maintain and operate a state-of-the-art unit operations and dynamics laboratory. It is estimated that an annual amount of $94,000 is required every year for operations and an initial investment of $860,000. Assuming an interest rate of 4% per year (compounded annually) how much money should the department set as a goal for a fundraising campaign for the endowment fund? If only ½ of the possible funds were raised how long would it be before the endowment ran out
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