Case Study The chancellor of a local private university is looking for ways to increase enrollment at his University and circulated a request for…

Case Study

The chancellor of a local private university is looking for ways to increase enrollment at his University and circulated a request for proposal to that effect. In response, the vice president of admissions submitted the following summary proposal.  She wishes to enter into a memorandum of understanding with four (4) community colleges for a 2 + 2 program (students complete two year studies from a community colleges can be admitted into her university). She promises that their earned credits form their Junior Colleges will count towards graduation at the University. The University will guarantee their graduation within two years if they take and successfully pass courses being offered in the university’s various programs.  She proposes that the action will earn the university minimum of five hundred thousand ($500,000.00) dollars per year for the next (3) three years, a fifty (50%) percent return. However, the university must invest $1,000,000.00 initially, which it does not have at hand. The accounting department of the university believe that the $500,000.00 annual revenue is possible. The finance department analysis indicates that the university can raise the needed one million ($1,000,000.00) dollars one time investment at a cost of 12 percent annual rate based on the university’s credit rating.  should the Board of Directors of the University approve this proposal? Why or why not? Support your conclusion with facts using what you learned from this course and others.

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