Question: Value of a mixed stream Hare Systems, Inc., a maker of electronic survilance equipment, is considering seling the rights to market its home security systiem
Value of a mixed stream Hare Systems, Inc., a maker of electronic survilance equipment, is considering seling the rights to market its home security systiem to a well-known haroware chain. The proposed deal cals for the hardware chain to pay Harte $26,000 and $27,000 at the end of yeans 1 and 2 and to make annual year and puyments of 516.000 m ynars 3 rwough A Tral ymet to Harle of 530,000 would be due at the end of year 10 a. Select the time ine that represents the cash flows involved in the offer b.-Harte applies nrequrod rade od ratum of 12%totem, what is to present value of ths sees of payments? c. A second company has offered Harte an immediate one-time payment of $100,000 for the rights to market the home security system Which offer should Harte accept? 9 10 s26,00 $27,000-$1,000 $16,000 $30,000 OB. 30,000 $16,000 $27,000 27,000 $26,000 26,000-$27,000-$16,000 $16,000-$30.000 D. 26,000 $27,000 $16,000 $16,000 $30,000 b. The present value of the mixed stream of cash Sows involved in the offer is Round to the nearest dolar) G. Which offer should Harte accept? (Select the best answer below) O A Immediate one-time payment offer O B. Seies of payments offer Series of pavment Cick to select your answers 3 4 5 6 9 0
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