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Upon learning of the tox chemical pollution, OBE believes it makes the beef business moreuncertain and may not have an appetite for this level of
Upon learning of the tox chemical pollution, OBE believes it makes the beef business moreuncertain and may not have an appetite for this level of risk. They want to explore the best options to capitalize on the patent. One of them is to sell the patent. An offer was made to buy the patent from you for $ This offer will expire in year. NPV of the patent is $An analyst estimates that given the recent development, the value of the beef business will fluctuate at a rate of per year. The current riskfree rate is a year.
a Should OBE accept this offer now? Provide reasons. Include a screenshot of your working Excel sheet in the Appendix.
b What is the minimum offer price that OBE should accept now? Include a screenshot of your working Excel sheet in the Appendix.
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