You wrote an app for smart phones. It is moderately successful. However, you just received an...

 

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You wrote an app for smart phones. It is moderately successful. However, you just received an offer to buy it (and the code) so they can repackage it with an app of their own. Since they hope to pay you with proceeds from their newly packaged app, they hope to pay you in installments. They are proposing to pay you 7 payments of $12,945 annually, starting when you sign the deal (today if possible). If you consider your opportunity costs of money to be 8.31% per year, what would be the present value of this deal if you sign the contract today? Please enter your answer to the nearest penny. You wrote an app for smart phones. It is moderately successful. However, you just received an offer to buy it (and the code) so they can repackage it with an app of their own. Since they hope to pay you with proceeds from their newly packaged app, they hope to pay you in installments. They are proposing to pay you 7 payments of $12,945 annually, starting when you sign the deal (today if possible). If you consider your opportunity costs of money to be 8.31% per year, what would be the present value of this deal if you sign the contract today? Please enter your answer to the nearest penny.

Answer rating: 100% (QA)

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