Required rate of return on the investment


Goldfarb Cancer Research Institute just received a $3 million gift to cover the salary for a permanent research scientist in perpetuity to study Hodgkin's disease. What would be the required rate of return on the investment if the position paid an annual salary of:

a. $75,000 per year?

b. $100,000 per year?

c. $125,000 per year?

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Finance Basics: Required rate of return on the investment
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