Suppose you own a patent which is able to generate a profit stream of (t) =...

 

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Suppose you own a patent which is able to generate a profit stream of (t) = where t(20) denotes time, and 0(> 0) is a given parameter. Notice that (t) starts from $1 (7(0) = 1) and slowly decreases to 0 (limt (t) = 0). The " -0t given parameter is actually the rate of decreasing since -Be e-ot dr(t)/dt = -0. TT (t) Your patent is certainly a valuable asset. Assuming the instantaneous inter- est rate is a constant r. Calculate the present value of your patent. = time.) (This question is concerned with discounting in continuous Suppose you own a patent which is able to generate a profit stream of (t) = where t(20) denotes time, and 0(> 0) is a given parameter. Notice that (t) starts from $1 (7(0) = 1) and slowly decreases to 0 (limt (t) = 0). The " -0t given parameter is actually the rate of decreasing since -Be e-ot dr(t)/dt = -0. TT (t) Your patent is certainly a valuable asset. Assuming the instantaneous inter- est rate is a constant r. Calculate the present value of your patent. = time.) (This question is concerned with discounting in continuous

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Calculating the Present Value of Your Patent The gift value of your patent represents its present day really worth thinking about the time price of mo... View the full answer