Question: A royalty contract promises a $ 5 0 0 , 0 0 0 sign - up bonus; ten annual royalty payments, starting with $ 2
A royalty contract promises a $ signup bonus; ten annual royalty payments, starting with $ next year then growing at a rate of ; and a final bonus in year ten, together with the last regular payment of $ If the appropriate discount rate is what is the value of all the payments if this royalty contract is signed today? Use the annuity formula in some of your calculations!
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