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Emerson developed a new style of camping trailer. He is considering a licensing agreement with Easy-Tow, who will manufacture the new trailer. They are proposing
Emerson developed a new style of camping trailer. He is considering a licensing agreement with Easy-Tow, who will manufacture the new trailer. They are proposing to pay him $39,000 now, and $13,000 at the beginning of each of the six years of the licensing agreement, starting in two years. If interest is 6.55% compounded semi-annually, what is the agreement worth today?
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