As a result of this decision what other tactical decisions


Recently, Madison College undertook a building project which required $6.5 million of capital. The college had endowment funds of more than $15 million and a triple A bond rating. After careful consideration, the Board and Management decided to finance the project through operations rather than using the endowment or borrowing the funds. Evaluate the pro's and con's and determine if this was the best decision given the circumstances. Is there any information missing which makes this decision difficult? As a result of this decision, what other tactical decisions might need to be made in terms of future staffing, raises, other capital projects?

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Finance Basics: As a result of this decision what other tactical decisions
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