Large donation must computer colleagues make today

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Computer Colleagues, Inc. wants its name on the new computer engineering building planned for Somewhere University. For naming rights, the university requires that 60% of the first cost of the building and 20% of the maintenance costs be covered by an endowment. The building will initially cost $50,000,000. Maintenance is expected to cost $700,000 per year, with overhauls to major systems (heat/air, etc) occurring every ten years at a cost of $6 million. If Somewhere University earns 8% per year on its investments, how large a donation must Computer Colleagues make today?

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Reference no: EM13743817

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