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Value of a mixed stream Harto Systems Inc, a maker of electronic surveillance equipment is considering selling the rights to market is homo security system

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Value of a mixed stream Harto Systems Inc, a maker of electronic surveillance equipment is considering selling the rights to market is homo security system to a well known hardware chain The proposed deal calls for the hardware chain to pay Harte $30,000 and $25,000 at the end of years 1 and 2 and fo make annual year-end payments of $15,000 in years 3 through 9 A final payment to Harto of $10,000 would be due at the end of yeat 10 a. Select the time line that represents the cash flows involved in the offer b. It Harte applies a required rate of return of 12% to them, what is the present value of this series of paymonts? c. A second company has offered Harto an immediate one-time payment of $100,000 for the rights to market the home security system which offer should Harto accept? a. Which of the following time lines represents the cash flows involved in the offer? (Select the best answor below) 0 10 - $30,000 - $25,000 515,000 1 2 $15.000 - 10.000 10 OB 0 9 530,000 $25.000 - 515,000 Incor -15,000 $10,000 OC 0 10 $10,000 $15,000 $25,000 575,000 $30,000 0 OD 0 10 530.000 $25,000 $15.000 515 000 $10,000

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