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A-d P10-8 (similar to) Question Help NPV Simes Innovations, Inc. is negotiating...

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P10-8 (similar to) Question Help NPV Simes Innovations, Inc. is negotiating to purchase exclusive rights to manufacture and market a solar powered toy car. The car's inventor has offered Simes the choice of either a one-time payment of $1,600,000 today or a series of 6 year-end payments of $355,000 a. Simes has a cost of capital of 12%, which form of payment should it choose? b. What yearly payment would make the two offers identical in value at a cost of capital of 12%? c. What would be your answer to part of this problem if the yearly payments were made at the beginning of each year? d. The after tax cash flows associated with this purchase are projected to amount to $230 750 per year for 15 years with factor change the firm's decision about how to fund the in v estment? .. Simes has a cost of capital of 12%, the present value of the annuity is (Round to the nearest dollar)

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