Our building is hot! The chiller on the building's air conditioning unit is broken. Every time it breaks, the temperature within the building goes up to 80F until it can be repaired. Fortunately, a wealthy alumnus has offered to endowi a fund to buy a new chiller every 10 years. How much money should he donate? UD plans on a 5% return on all investments. Hints: Draw a timeline showing all cash flows Discount all cash flows to zero Simplify sums Calculate answer Chiller $75,000 $25,000 10 years Purchase Price Salvage Value Expected Lifetime "An endowment is an asset, including cash, donated to and for the perpetual benefit of a nonprofit institution