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An investor is considering to purchase a new firm, with (1) assets in place, worth $100 million, and (2) a patented technology. What is the
An investor is considering to purchase a new firm, with (1) assets in place, worth $100 million, and (2) a patented technology. What is the value of the firm, if the implementation of the technology with result in NPV of $50 million, will require the investment of $200 million, the uncertainty of the returns from the patented technology (if implemented) is 80% (based on Monte Carlo simulations), the patent protection is for 10 years, and the firm does not anticipate to immediate implement said technology?
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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