You wrote a piece of soft ware that does a better job of allowing computers to network

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You wrote a piece of soft ware that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your soft ware into their systems and is offering to pay you $500,000 today, plus $500,000 at the end of each of the following six years for permission to do this. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream that the company is offering you?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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