Question
The chancellor of a local private university is looking for ways to increase enrollment at his University and circulated a request for proposal to that
The chancellor of a local private university is looking for ways to increase enrollment at his University and circulated a request for proposal to that effect.In response, the vice president of admissions submitted the following summary proposal.
She wishes to enter into a memorandum of understanding with fourUniversities in United Kingdom as part of exchange program.She promises that their earned credits from their Universitieswill count towards graduation atherUniversity. The University will guarantee their graduationon timeif they take and successfully pass courses being offered inheruniversity's various programs.
She proposes that the action will earn the university minimum of five hundred thousand ($500,000.00) dollars per year for the next (3) three years, a fifty (50%) percent return. However, the university must invest+#1,000,000.00pounds starlingsinitially, which it does not have at hand.The exchange rate is +#.89per $1.00.The accounting department of the university believe that the $500,000.00 annual revenue is possible. The finance department analysis indicates that the university canraise the needed one million (+#1,000,000.00)poundsone time investment at a cost of 12 percent annual rate based on the university's credit rating.Ina separate sheet, answer the questions belowand upload by deadline: April 19, 202111:59 pm.
1.Base on your understanding of time value of money, should the Board of Directors of the University approve this proposal (support your decision with computations)?20 points
2.What is the actual return on this proposal (show your computations)?15 points
3.Add any other explanation to support your conclusion with facts using what you learned from this course and any other alternative methods.15 points
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