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Your firm just signed a contract to receive royalty forever. The royalty is estimated to be $1mil, every year, starting from next year. If the
Your firm just signed a contract to receive royalty forever. The royalty is estimated to be $1mil, every year, starting from next year. If the discount rate is 11%, what is the present value of the royalties from this contract?
Multiple Choice
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$0.9mil
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$110mil
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$11mil
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$9.1mil
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