What is the amount of the endowment required

Assignment Help Finance Basics
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?

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Answer the multiple choice questions

Accounting for long-term investments in equity securities with controlling influence uses the: at the end of the accounting period, the owners of debt securities:

  Formula for present value of settlement payments

A court settlement awarded an accident victim four payments of the $50,000 to be paid at the end of each of next four years.

  Calculate the actual return

You purchased 1,000 shares of stock for $23 per share exactly one year ago. During the year, the stock paid a $.50 dividend per share and the current stock price is $20 per share. The inflation rate the last year was 2%.

  How does regulation lead to innovation in financial markets

How does regulation lead to innovation in financial markets and institutions?

  Create equity statement for ulrich in two scenarios

Ulrich Inc.'s Articles of Incorporation authorize the firm to issue 500,000 shares of $5 par-value common stock, of which 325,000 shares have been issued. Create the equity statement for Ulrich.

  What is the amount of the operating cash flow

The Beach House has sales of $770,000 and a profit margin of 6 percent. The annual depreciation expense is $90,000. What is the amount of the operating cash flow if the company has no long-term debt?

  Calculation of budgeted production dollars

Calculation of budgeted production dollars and Directing and coordinating operations during the period

  What is the firm''s corporate cost of capital

It pays federal, state, and local taxes at a 35 percent marginal rate. a. What is the firm's corporate cost of capital?

  What is mrp5 minus mrp2

If 2-year and 5-year Treasury notes both yield 10%, what is the difference in the maturity risk premiums (MRPs) on the two notes; that is, what is MRP5 minus MRP2? Round your answer to two decimal places.

  Computation of payroll accounting with taxes

Computation of payroll accounting with taxes and Compute the missing amounts in the chart provided

  Time value of money concepts of life insurance policy

You're the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds.

  Which does almost all of the photocopying for the sales

Bullock's Company's copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of 5,000,000 copies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd