Question
NIU is a tax-exempt and has excess capacity on its computer servers now. Based on existing usage and growth in demand, it will have to
NIU is a tax-exempt and has excess capacity on its computer servers now. Based on existing usage and growth in demand, it will have to invest $ 5 million in additional server space at the end of year 6. It has been approached by a local hedge fund that is interested in leasing some of the excess server space for the next 6 years for a fixed, annual fee. This will, however, require the college to invest $ 5 million in additional server space at the end of year 3. What is the minimum that NIU should charge the local business as an annual fee for the next 6 years, if the discount rate is 14%? a. 282,082.45 b. 154.653.32 c. 542.653.33 d. 554.222.33
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