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Homework: Chapter 5 Homework Score: 067 of 2 pts & P5-32 (similar to) 8 of 10 (10 complete) HW Score: 90%, 18 of E Question
Homework: Chapter 5 Homework Score: 067 of 2 pts & P5-32 (similar to) 8 of 10 (10 complete) HW Score: 90%, 18 of E Question Help Value of a mixed stream Harte Systems, Inc, a maker of electronic survillance equipment, is considering selling to a well-known hardware chain the rights to market its home security system. The proposed deai calis for the hardware chain to pay Harte $34,000 and $21,000 at the end of years 1 and 2 and to make annual year end payments of $10,000 in years 3 through 9. A final payment to Harte of $25.000 would be due at the end of year 10 a. Select the time line that represents the cash flows involved in the offer b. If Harte applies a required rate of return of 9% to them, what is the present value of this senes of payments? C. A second company has offered Harte an immediate one-time payment of $90,000 for the rights to market the home security system Which offer should Harte accept? a. Which of the following time lines represents the cash flows involved in the offer? (Select the best answer below) 10 $34000-$21,000-$10,000 -$10,000-$25,000 10 S34,000 $21,000 $10,000 $10,000 $25,000 10 $25,000 $10,000 $21,000 $21,000 $34,000 D0 10 Enter your answer in the answer box and then click Check
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