Bill will receive a royalty payment of $18,000 per year for the next 25 years, beginning one
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Bill will receive a royalty payment of $18,000 per year for the next 25 years, beginning one year from now, as a result of a book he has written. If a discount rate of 10 percent is applied, should he be willing to sell out his future rights now for $160,000? How about $162,500? $165,000?
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18000 x 25 470000 Then if a discount rate of 10 percent is applied 160000 11 15693333 Is that plausi...View the full answer
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