Q a charitable university benefactor has decided to donate

Assignment Help Business Economics

Reference no: EM13353469

Q. A charitable university benefactor has decided to donate a large amount of money for student scholarships. The money can be provided in one lump-sum of $10mln, or in parts, where $5.5mln can be provided in year 1, as well as another $5.5mln can be provided in year 2. Assuming the opportunity interest rate is 6%, what is the present value of the second alternative? Which of the two alternatives should be chosen as well as why? How would your decision change if the opportunity interest rate was 12%? Elucidate all your calculations.

Reference no: EM13353469

Questions Cloud

Q 1the boston marathon bombing was an example of an : q. 1.the boston marathon bombing was an example of an intelligence community miss what steps would you says we need to

Qassume that omar s marginal utility for cups of coffee is : q.assume that omar s marginal utility for cups of coffee is constant at 3.5 units per cup no matter how many cups he

Qa firm sells its production in a perfectly competitive : q.a firm sells its production in a perfectly competitive market at a fixed cost of 10 per unit. it buys 2 inputs l as

Qconclusion at harding silicon enterprises incharding : q.conclusion at harding silicon enterprises inc.harding silicon enterprises inc. produces less than 1 of the worlds

Q a charitable university benefactor has decided to donate : q. a charitable university benefactor has decided to donate a large amount of money for student scholarships. the money

Q1 the term educational technology covers a wide range of : q1. the term educational technology covers a wide range of tools and methods exploiting computers networks and media

Q1 corporate profitability declined by 20 from 2008 to 2009 : q1. corporate profitability declined by 20 from 2008 to 2009. what performance would you use to trigger executive

Q1 how sociological approach toward social problems does : q1. how sociological approach toward social problems does differs from other approaches. why certain problems are

Q a show how to own equilibrium in a robinson crusoe modelb : q. a show how to own equilibrium in a robinson crusoe model.b what is the relationship between the marginal rate of

User Account

All Pages