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Rebecca has built a very profitable business, and she credits the entrepreneurship program at her alma...

Rebecca has built a very profitable business, and she credits the entrepreneurship program at her alma mater for a lot of her success. She would like to donate money to her old school to help one worthy graduate each year establish his or her own business. She will donate the money today, with the understanding that the first award will go to a graduate of this yearʹs junior class. (That is, the first award will be made two years from now.) Her alma mater is able to invest the funds at a constant, annual, tax -free rate of 5%. How much must her donation need be if she would like for the annual award to be $150000 a year and wants the program to continue forever, even after she is no longer around? Round up your answer to the nearest thousand dollar.

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum Wrap Text aCopy в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting FC52 EY EZ FA FB FD FE FG FH FI FK FL FM 38 39 40 41 42 43 this is a case of perpetuity but first award will be given after 2 years so step 1 calculate perpetuity of 150000 @ 5%-amount/ r value of perpetuity 150000/0.053000000 45 46 47 48 49 50 51 52 53 54 step 2present value of perpetuity today 3000000x PVIF @5%, 1 year 3000000 x (1/1.05) 2857142.86 ANSWER 2857143 56 /4 | CALCULATOR . LOAN OPTIONS CAP STRU VALUE BOX DILUTION DOLLAR COST AVGMORTGAGE EXPO Sheetl Sheet2 ShelI rences: x261 02:14 07-01-2019

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