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Robert Cheung has built software and would like to sell all the rights to an automotive company. The company gave him two options, take $200,000
Robert Cheung has built software and would like to sell all the rights to an automotive company. The company gave him two options, take $200,000 now or receive a royalty of $20,000 a year for the next 15 years, the first payment being made now and subsequent payments being made on the 1st day of each year. Which option should Julian accept considering an 8% discount rate? Answer with proper calculation and explanation
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