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Suppose that Neil Diamond wants to raise capital for a new venture. To raise the funds, he will sell the rights to his future royalties
Suppose that Neil Diamond wants to raise capital for a new venture. To raise the funds, he will sell the rights to his future royalties to his music catalog. His projected royalties for the end of next year is $ million. These royalties will DECREASE in size by per year going forward. Diamond is offering these "rights" for a year duration. The investment promises an annual percentage return.
Based on these assumptions, how much capital cantileil Diamond raise if he sells all his royalties? round to the nearest million
$ million
$ million
$ million
$ million
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