Bob, a philanthropist, is not sure what rate of return his gifts may realize once donated to
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Bob, a philanthropist, is not sure what rate of return his gifts may realize once donated to his favorite charity. Determine the capitalized cost of $10,000 every 5 years forever, starting 5 years from now at an interest rate of
(a) 3%
(b) 8% per year.
(c) Explain the significant difference between the two capitalized costs.
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