Question: Dr. Fog E. Professor is retiring and wants to endow a chair of engineering economics at his university. It is expected that he will need

Dr. Fog E. Professor is retiring and wants to endow a chair of engineering economics at his university. It is expected that he will need to cover an annual cost of $100,000 forever. What lump sum must he donate to the university today if the endowment will earn 10% interest?

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