(Answered) You dream of endowing a chair in finance at the local

Finance

You dream of endowing a chair in finance at the local university that will provide a salary of $150,000 per year forever, with the first cash flow to be one year from today. If the university promises to invest the money at a rate of 5% per year, how much money must you give the university today to make your dream a reality?

A) $3,000,000

B) $15,000,000

C) $2,857,143

D) This question cannot be answered.

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