Question: Scent Systems, Inc is start-up company developing a system to deliver fragrances to buildings. The technology will allow for delivery of customized fragrances directly through

Scent Systems, Inc is start-up company developing a system to deliver fragrances to buildings. The technology will allow for delivery of customized fragrances directly through a building's HVAC systems. Occupants of a room can customize and manage the scent of their room via their smartphone.

The technology will be available soon and the company expects the first annual cash flow of $5200 to begin 3 years from today. Cash flows are expected to increase at a rate of 3.80% annually forever. Using a discount rate of 8.70%, what is the present value of the technology?

(Enter your answer as a number with at least two decimal places. Do not include dollar signs or commas. )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The perpetuity will reflect the cash flows which will be continuing forever ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Monthly sales of an SUV model are expected to increase at the rate of S(t) = -24t 1/3 SUVs per month, where t is time in months and S(t) is the number of SUVs sold each month. The company plans to...

Monthly sales of a particular personal computer are expected to increase at the rate of S(t) = -4te 0.1t computers per month, where t is time in months and S(t) is the number of computers sold each...

Youre developing a system to orient an orbiting telescope. The system uses three perpendicular coils, with torques developed in Earths magnetic field when current passes through them. Weight...

Atlantic Coast Railroad Company wishes to evaluate three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows:...

United Bankshores, Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Instructions1....

NPV, IRR, and sensitivity analysis Crumbly Cookie Company is considering expanding by buying a new (additional) machine that costs $62,000, has zero terminal disposal value, and has a 10-year useful...

First Security Bancorp Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Instructions...

Donahue Industries Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Instructions 1....

Evergreen Security Bank, Inc., wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: 1. Assuming...

Gems International, Ltd., is a foreign firm that has a 12 percent share of the U.S. market for diamonds. To capture a larger share, Gems offers its products at a below-cost discount to U.S. buyers...

Examples 1, 3, and 5 referred to a study about astrology. Another part of the study used the following experiment: Professional astrologers prepared horoscopes for 83 adults. Each adult was shown...

FPSY 5115 - What do you see as the strengths and weaknesses of qualitative vs. quantitative methods and which kind of forensic research would either approach be best suited

Vivid Tech Group provides cell phones to their employees to promote goodwill and boost morale. The value of the cell phone is $1,000. Based on IRS guidance, what portion of the cell phone value will...

The Bob White Karate Studio has been a local fixture for almost 40 years. The studio offer straining in American Kenpo Karate to students from 3 years old to 80 years old. Students select one of...

Find the inverse Laplace transform of F(s) = (s 2 + 6s + 9)/ (s 1)(s 2)(s + 4)

Explain how you would decide on a final recommendation for Leighton Beridon who owns Jeemp Farms.

Portfolio A consists of a one-year zero-coupon bond with a face value of $10,000 and a 5-year zero-coupon bond with a face value of $40,000. Portfolio B consists of a 4.121-year zero-coupon bond with...

What does this range mean Out of 20 pts Points Low: 7.0 Mean: 14.7 High: 20.0

Scent Systems, Inc is start-up company developing a system to deliver fragrances to buildings. The technology will allow for delivery of customized fragrances directly through a building's HVAC...

Scent Systems, Inc es una empresa nueva que desarrolla un sistema para entregar fragancias a los edificios. La tecnologa permitir la entrega de fragancias personalizadas directamente a travs de los...

Plaex Building Systems Inc., a startup firm based in Hampstead, New Brunswick, is a monopolist selling eight units of its output at a price of $20. If the marginal revenue of the ninth unit is $2,...

Question one. 7. If a bond is quoted in the newspaper at 88.75, the current price of a $1,000 face value bond is: (Points : 1) $75.00 $88.00 $88.75 $887.50 $1,000.00 11. Assume the beta for the stock...

Arnazon.com in September 1996, Fleishman felt, "it was like going t, the world's best college. I was surrounded by smart people." ~ 1 1 applicants were asked for their SAT scores and college grade...