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can you draw a cash flow diagram Question 3 (10 pts): Someone wishes to start a perpetual scholarship. The scholarship will provide a student with
can you draw a cash flow diagram Question 3 (10 pts): Someone wishes to start a perpetual scholarship. The scholarship will provide a student with an annual stipend of $10,000 for each of 4 years (freshman through senior), plus an additional $5,000 during the senior year to cover job search expenses. Assume that students graduate in 4 years, a new award is given every 4 years, and the money is paid at the end of each year with the first award at the end of Year 1 . The interest rate is 10%. 1) (8 pts) Determine the equivalent uniform annual cost (EUAC) of providing the scholarship. Draw the cash flow diagram ( 4 pts) and show all work ( 4 pts). 2) (2 pts) How much money must be donated now to set up the scholarship fund
can you draw a cash flow diagram
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