Question
Mr. Jones has a royalty deal for an invention he designed.His patent will pay him a perpetuity of $10,000 per month beginning 15 years from
Mr. Jones has a royalty deal for an invention he designed.His patent will pay him a perpetuity of $10,000 per month beginning 15 years from today.The Required return for this investment Ri= 6.0%, (m = 12).What is the intrinsic value of the invention today?Round to the nearest dollar.
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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
