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Try this example: Example 9 : Austin, a pet food manufacturer, developed a patented blend of nutritional food for dogs and has licensed its international

Try this example:
Example 9: Austin, a pet food manufacturer, developed a patented blend of nutritional food for dogs and has licensed its international sales to Pheonix inc. for 25 years. Under this
arrangement, Pheonix inc. will pay a constant payment of $50,000 per year for the next 25 years, beginning one year from now and a single payment of $1 million after 25 years. If a
discount rate of 6 percent is applied, how much is this license deal worth now? Apply the correct formula in cell C168. The output will be negative, but, you have to ignore the negative sign
because according to the question, we just need to find the present worth of this deal and this PV will not be actually paid by Austin to Pheonix inc. Thus, we want a positive value, and so we will use and not =PVO
PV
EPVO
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