A wealthy philanthropist has established the following endowment for a hospital. The details of the endowment include

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A wealthy philanthropist has established the following endowment for a hospital. The details of the endowment include the following:

a. A cash deposit of $10 million one year from now.

b. An annual cash deposit of $3 million per year for the next 15 years. The first $3 million deposit will start today.

c. At the end of year 15, the hospital will also receive a lump sum payment of $15 million.

Assuming the cost of money is 5 percent, what is the value of this endowment in today’s dollars?

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Financial Management Of Health Care Organizations

ISBN: 9780631230984

2nd Edition

Authors: William N. Zelman, Michael J. McCue, Alan R. Millikan, Noah D. Glick

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Question Posted: Jun 04, 2024 01:13 AM

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A wealthy philanthropist has established the following endowment for a hospital. The details of the endowment include

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Financial Management Of Health Care Organizations

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