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Please just parts B and C o Value of a mixed stream Harte Systems, Inc., a maker of electronic survillance equipment, is considering selling the
Please just parts B and C
o Value of a mixed stream Harte Systems, Inc., a maker of electronic survillance equipment, is considering selling the rights to market its home security system to a well-known hardware chain. The proposed deal calls for the hardware chain to pay Harte $26,000 and $21,000 at the end of years 1 and 2 and to make annual year-end payments of $16,000 in years 3 through 9. A final payment to Harte of $20,000 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 series of payments? c. A second company has offered Harte an immediate one-time payment of $120,000 for the rights to market the home security system. Which offer should Harte accept? $20,000 $16,000 $21,000 $21,000 $20,000 D. 0 1 2 3 9 10 1 - $16,000 $20,000 $26,000 $21,000 - $16,000 b. The present value of the mixed stream of cash flows involved in the offer is $ (Round to the nearest dollar.) c. Which offer should Harte accept? (Select the best answer below.) A. Series of payments offer B. Immediate one-time payment offerStep by Step Solution
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