1. Inflation is one of the most difficult factors to deal with in project analysis. Complete the inflation impact table shown in Exhbit 20.2. b. What management information is provided by the inflation impact table?
2. A permanent endowment at a major university is established to award scholarships to engineering students. The scholarships will be awarded 11 years after the $10 million lump-sum donation is made. If the interest from the endowment is to fund 100 students each year in the amount of $10,000 each (for infinite years), what annual rate of return must the endowment fund earn? Hint: (5%<=i*<=6%).