1. As director of development for Southern Ohio State University (SOSU), you have been charged with developing a plan to endow 12 men’s basketball scholarships. The current cost of a scholarship athlete is $45,000. With the tuition expenses expected to increase at a 5.5% rate annually and the endowment’s return expected to average 7% over time, calculate the total amount that will have to be raised to fully endow the 12 scholarships.
2. Based on your work in Problem 1, develop and submit a major gifts table for the capital campaign. explain the method you used to construct the chart.
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