Art Arfons, a K-State-educated engineer, has made a considerable fortune. He wishes to start a perpetual scholarship

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Art Arfons, a K-State-educated engineer, has made a considerable fortune. He wishes to start a perpetual scholarship for engineering students at K State. The scholarship will provide a student with an annual stipend of $2500 for each of 4 years (freshmen through senior), plus an additional $5000 during the senior year to cover entertainment expenses. Assume that students graduate in 4 years, a new award is given every 4 years, and the money is provided at the beginning of each year with the first award at the beginning of year one. The interest rate is 8%.
(a) Determine the equivalent uniform annual cost (EUAC) of providing the scholarship. .
(b) How much money must Art donate to K-State?
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Engineering Economic Analysis

ISBN: 9780195168075

9th Edition

Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle

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