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Please show work or method of calculation. Mathew Yost wishes to endow a chair in finance at his alma mater. The university indicated that it
Please show work or method of calculation.
Mathew Yost wishes to endow a chair in finance at his alma mater. The university indicated that it requires 25,000 per year to support the chair, and the endowment would earn 6% per year. To determine the amount Matt must give the university to fund the chair, we must determine the present value of a $25,000 perpetuity discounted at 6%.
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