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A logistics company would like to fund a new and advanced science laboratory at a certain university. The principal for the donation will earn interest
A logistics company would like to fund a new and advanced science laboratory at a certain university. The principal for the donation will earn interest that averages 8% per year, which will be sufficient to cover all expenditures incurred in the establishment and maintenance of the laboratory for an indefinitely long period of time. Cash requirements of the lab are estimated to be P100,000 in investment plus a maintenance cost of P30,000 per year and equipment replacement costs of P20,000 at the end of every fourth year. a.) What study period can denote the phrase, "indefinitely long period of time"? b.) What amount of principal donation is required to establish the lab and then earn enough interest to support the remaining cash requirements of the lab forever
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