What amount of endowment principal

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Reference no: EM131318777

Suppose that a firm wishes to create an endowment for a laboratory. It will earn an interest of 12% per year. Cash requirement are estimated to be $150,000 (to establish it), $40,000 per year indefinitely. Also $30,000 every fourth year and $50,000 every ten years for equipment replacement indefinitely.

What amount of endowment principal (CW) is required to support remaining cash requirements?

Reference no: EM131318777

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