"Red Herring will receive $11,000 a year for the next 18 years as a result...
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"Red Herring will receive $11,000 a year for the next 18 years as a result of his patent. At present, 9 percent is an appropriate discount rate. Would he be willing to sell his future rights now for $100,000, if the payments will be made at the beginning of each year?"
To solve this problem, will you calculate for the
a) present value of ordinary annuity?
b) present value of annuity due?
c) future value of annuity?
d) present value?
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