Question: Value of a mixed stream Harte Systems, Inc., a maker of electronic survillance equipment, is considering selling to a well - known hardware chain the

 Value of a mixed stream Harte Systems, Inc., a maker of

Value of a mixed stream Harte Systems, Inc., a maker of electronic survillance equipment, is considering selling to a well - known hardware chain the rights to market its home security system. The proposed deal calls for the hardware chain to pay Harte $32,000 and $25,000 at the end of years 1 and 2 and to make annual year - end payments of $16,000 in years 3 through 9. A final payment to Harte of $15,000 would be due at the end of year 10. a. Select the time line that represents the cash flows involved in the offer. b. If Harte applies a required rate of return of 12% to them, what is the present value of this series 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

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