question archive Ford Foundation expects to award $15 million in grants to public high schools to develop new ways to teach fundamentals of engineering to prepare students for university level
Ford Foundation expects to award $15 million in grants to public high schools to develop new ways to teach fundamentals of engineering to prepare students for university level
Subject:EconomicsPrice: Bought3
Ford Foundation expects to award $15 million in grants to public high schools to develop new ways to teach fundamentals of engineering to prepare students for university level. The grant will extend over a 10-year period and create an estimated savings of $1.5 million/year in faculty salaries and student related expenses. The Foundation uses a discount rate of 6% on all grant awards. The grant program will share the Foundation's funding with ongoing activities, so an estimated $200,000 will be removed from other program funding. To make this program successful, a $500,000/year operating cost will be incurred from the regular O&M budget. Use the B/C method to determine if the grants program is economically justified. Answer: Conventional B/C = 0.51; Modified B/C = 0.39. Grant program is Not Justified.
