Suppose the gain to an innovating firm is $200,000 a year and the patent the firm obtains
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Question:
Suppose the gain to an innovating firm is $200,000 a year and the patent the firm obtains has a life of 20 years. The interest rate is 10%. What is the Present Value of innovation to the innovating firms? In the patent race, what might each firm be willing to spend on research and development (R&D)?
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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