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Ace Inc. is considering the purchase of license rights on January 1, year 1. The rights will generate $12,800 net cash inflow each January 1
Ace Inc. is considering the purchase of license rights on January 1, year 1. The rights will generate $12,800 net cash inflow each January 1 for five years, starting January 1, year 1. At the end of year 5, the rights will have no value. Assuming a 14% compound interest rate, what should Ace be willing to pay for the rights on January 1, year 1? $Answer
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