What is the present value of the video game franchise

Assignment Help Finance Basics

Reference no: EM131981056

Question: Your uncle developed a new video game franchise and left the rights to you. Under current copyright law, your intellectual property is protected for 95 years. You expect that the profits from the franchise will be $1 million in its first year and that this amount will grow at a rate of 5% per year during the life of the copyright. Assume each year's profits are received at the end of the period. Further assume that once the copyright expires, imitations and knockoffs will drive the profits from the intellectual property to zero. What is the present value of the video game franchise if the interest rate is 9% per year?

Reference no: EM131981056

Questions Cloud

What special attributes must supervisors : On Organizing and Authority, what special attributes must supervisors have to be successful in some of the new types of organizational structures?

Smoothie company open exercise facility : Should TML Smoothie Company open an exercise facility?

What changes might you make to increase fiber in your diet : What changes might you make to increase the fiber in your diet? How much of your daily recommended protein, carbohydrates, and lipid intake did you achieve?

Components of an effective business model : What are the components of an effective business model? Why is it important to understand a firm's business model before you buy it

What is the present value of the video game franchise : Your uncle developed a new video game franchise and left the rights to you. Under current copyright law, your intellectual property is protected for 95 years.

Analysis of a potential business concept : What are the steps of performing a feasibility analysis of a potential business concept?

Design and production of a product : 49309 Quality Planning and Analysis Research Report Assignment - Design and production of a PRODUCT and Design and provision of a SERVICE

Advertising and marketing literature or commercials : What are some rhetorical devices you have notices in advertising and marketing literature or commercials? Why are they effective (or ineffective)?

Focus on forecasting models : Why is it important for firms to focus on forecasting models? Please be very detailed.

User Account

All Pages