Show solving on MS word

2a)

b)

Goose Lane, a publisher located here in Fredericton, is seeking to diversify its strategy. It wishes to purchase the English-language rights to the Japanese manga series Classroom Soul Slayer. It will cost $2.90 million for licensing and translation of the 20 -volume series. It is anticipated the series will generate $800,000/yr in profits for seven years, after which the right of ownership reverts back to the creator. Furthermore, at termination (i.e., at the end of seven years), Goose Lane is required to remit a single-payment royalty fee equal to one year's worth of profits (again, expected to be $800,000 ). Assume Goose has an 10% RRR. Calculate the simple payback period. (A timeline is optional for this problem.) Dominion Bank at their headquarters on Wellington Street in Hogtown. You've decided to rent a parking space in a garage off Wellington. Because you've agreed to a five-year lease, you've been given a deal-a mere $4000/ year, which works out to a monthly fee that's rather reasonable for downtown Toronto. Still, $20,000 for parking over the life of the lease feels like a rather big bite in the butt, until you remember the time value of money! If the market portfolio is earning 8%, what are you actually paying for the five years in today's dollars? Keep in mind that the first payment is due immediately upon signing the contract (naturally)