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Jacob 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
Jacob 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 $33,000 now, and $11,000 at the beginning of each of the twelve years of the licensing agreement, starting in one year. If interest is 8.4% compounded semi-annually, what is the agreement worth today? The agreement is worth $ . Today.
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