Question
Harte Systems inc a maker of electronic surveillance equipment is considering selling a well known hardware chain the rights to market its home security system.
Harte Systems inc a maker of electronic surveillance equipment is considering selling a well known hardware chain the rights to market its home security system. the proposed deal calls for the hardware chain to pay Harte 28,000 and 23,000 at the end of years 1 and 2 and to make annual year end payments of 18,000 in years 3 through 9. a final payment to Harte of 15,000 would be due at the end of year 10. b. if Harte applies a required rate of return of 9% to them, what is the present value of this series of payments? c. a second company has offered Harte an immediate one-time payment of 130,000 for the rights to market the home security system. which offer should Harte accept? a one time payment or a series of payments?
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