What is the present value of the patent

Reference no: EM132197634

Question: A company is expecting sustained growth for the next 15 years due to a patent it has successfully defended. Next year the company is expected to bring in net cash flows of $350,000. The company expects its earnings to grow annually at a rate of 15% for the next 5 years and then by 7.5% for the remainder of the 15 year horizon. What is the present value of the patent - this growing annuity - if the company uses a discount rate of 12 percent on its investments? (Round to the nearest dollar.)

Reference no: EM132197634

Questions Cloud

Determine whether the user entered a valid number : 1. The user should be prompted to input a positive number.

After covering word-excel and powerpoint : After covering Word, Excel, and PowerPoint. In which program do you feel you are strongest? What do you think you could do to bolster your strength in the other

Explain the meanings associated with the programming : Briefly explain the "meanings" associated with the programming language names C++, Lisp, Prolog.

What language supported data structure : Lists are also supported in Prolog. In C and C++, a list can be implemented using what language supported data structure?

What is the present value of the patent : A company is expecting sustained growth for the next 15 years due to a patent it has successfully defended. Next year the company is expected to bring.

How has globalization influenced the current relationship : Explain the historical relationship between Judaism, Christianity, and Islam. What are their geographical connections? What are their historical timelines?

Explain the function that make image recognition possible : Machine learning or artificial intelligence is currently a very popular field in computer programming. It is a branch of artificial intelligence.

Moment about the telecommunication industry : Think for a moment about the telecommunication industry today and what it was just a few years ago, where are we headed?

Briefly describe what the film is about : Briefly describe what the film is about. What is the filmmaker's agenda? What kind of message do you think they are trying to convey?

User Account

All Pages