What is the amount of the endowment required

Reference no: EM13269653

Chattanooga and the State of Tennessee Development Board wants to build an incubator on the east side. The initial investment will be $325,000 and the endowment principal will earn 9% per year.The operating and maintenance cost for the incubator is eastimated to be $53,000 each year, and $42,000 to upgrade the equipment at the end of every tenth year. What is the amount of the endowment required to establish the center and supply the funds to maintain this center forever?

Reference no: EM13269653

Questions Cloud

Globalization and offshoring : Why, how, and whether the issue has become a social issue rather than simply remain a private issue? What do you see as the responsibilities of the affected individuals?

Calculate the wind force on the turbine for a 5 mph wind : a) Calculate the wind force on the turbine for a 5 mph wind. b) What is the force if the wind speed is tripled? c) Calculate the torque on the tower for the cases of the 5 and 15 mph wind velocities

Find the after-tax rates of return on all three securities : Shrieves's corporate tax rate is 40%, and 70% of the dividends received are tax exempt. Find the after-tax rates of return on all three securities. Round your answers to two decimal places.

Find what is the energy per bit for the bpsk pulse : Consider a BPSK signal where each bit is represented by a triangular pulse with width T and height A. What is the "energy per bit" for this BPSK pulse with A=7V and T=0.008s

What is the amount of the endowment required : What is the amount of the endowment required to establish the center and supply the funds to maintain this center forever?

What is the change in the wires resistance : A copper wire has a 25-m ohm resistance at 20 degrees C. When the wire is carrying a current, What is the change in the wire's resistance

What would franklins monthly mortgage payment be : Franklins bank has offered him a standard 30 year old mortgage with a 5.7% nominal interest rate. what would Franklins monthly mortgage payment be?

Determine the average force on the ball : A 4.0 kg ball is traveling at 3.0 m/s and strkes a wall. The 4.0 kg ball bounces off the wall with a velocity of 4.0 m/s. determine the average force on the ball

What is the amount of the net new borrowing : The financial statements for the current year reflect an interest paid amount of $18,700 and dividends of $22,000. What is the amount of the net new borrowing?

User Account

All Pages