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2a. An O.U alumni donate $500,000 to set-up annual scholarships in the School of Engineering and Computer Science. The fund earns 10% APR in each

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2a. An O.U alumni donate $500,000 to set-up annual scholarships in the School of Engineering and Computer Science. The fund earns 10% APR in each of the first four years, 8% APR each year for the next four years and 6% APR per year thereafter. A fixed amount is to be withdrawn every year starting end of year 1 and forever. Estimate the amount available for annual scholarship. 2b. Find ((A/P,1%,20). (F/P,1%,20) and (A/7,1%,20) from the tables and interpret each number, 2c. Why do you need equal length planning horizon when comparing two alternatives based on the NPW analysis but you do not need that condition to be met while comparing based on the (EUAB-EUAC) analysis? 2a. An O.U alumni donate $500,000 to set-up annual scholarships in the School of Engineering and Computer Science. The fund earns 10% APR in each of the first four years, 8% APR each year for the next four years and 6% APR per year thereafter. A fixed amount is to be withdrawn every year starting end of year 1 and forever. Estimate the amount available for annual scholarship. 2b. Find ((A/P,1%,20). (F/P,1%,20) and (A/7,1%,20) from the tables and interpret each number, 2c. Why do you need equal length planning horizon when comparing two alternatives based on the NPW analysis but you do not need that condition to be met while comparing based on the (EUAB-EUAC) analysis

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