Which offer should harte accept

Assignment Help Finance Basics

Reference no: EM131111505

Harte Systems, Inc., a maker of electronic surveillance 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 $30,000 and $25,000 at the end of years 1 and 2 and to make annual year-end payments of $15,000 in years 3 through 9. A final payment to Harte of $10,000 would be due at the end of year 10.

a. Lay out the cash flows involved in the offer on a time line.

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?

Reference no: EM131111505

Questions Cloud

Bursts for all of the processes running on our os : Our goal is to change the scheduler in xv6 to something a bit more robust, but before we even get to that step we're going to need some accounting facilities to keep track of CPU bursts for all of the processes running on our OS.

How large must the single deposit today : How large must the single deposit today into an account paying 8% annual interest be to provide for full coverage of the anticipated budget shortfalls? What effect would an increase in your earnings rate have on the amount calculated in part a?

Describe the three levels of jurisdiction in arizona : Describe the three levels of jurisdiction in Arizona. Explain what courts make up each level and create an example of the type of case that could be heard by each court.

How hellenists governed lands that alexander had conquered : What explains the differences in how the Hellenists governed the lands that Alexander had conquered? To explain your conclusion, consider the differences and similarities in how each area was governed.

Which offer should harte accept : Lay out the cash flows involved in the offer on a time line. If Harte applies a required rate of return of 12% to them, what is the present value of this series of payments? A second company has offered Harte an immediate one-time payment of $100,000..

Explain the basic steps in the planning process : Predict how the steps of the strategic planning process and the environmental factors that influence decision making impact the quality-productivity-profitability link.

How selected category is manifest in your social environmet : Describe selected content and explain the significance of the selected category across the religions studied. Provide one specific example of how the selected category is manifested in your social environment.

Social responsibility to serve all communities : Financial institutions have a legal and social responsibility to serve all communities. Do banks adequately serve both inner city and suburban neighborhoods, both poor and wealthy communities?

Compare the calculated present values and discuss : Find the present value of each stream using a 15% discount rate. Compare the calculated present values and discuss them in light of the fact that the undiscounted cash flows total $150,000 in eachcase.

User Account

All Pages