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An alumnus has given her university $10 million to build and operate a laboratory. Annual operating cost is estimated to be $100,000. Assume that the

An alumnus has given her university $10 million to build and operate a laboratory. Annual operating cost is estimated to be $100,000. Assume that the endowment will earn 6% interest and that laboratory will have an infinite life. Determine how much money may be used for its construction.

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