Answered: d 12% per annum, what would be the year…

d 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 PROVIDE BELOW!)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 PROVIDE BELOW!)

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