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Congratulations! You are the inventor of a new technological marvel and you have received several offers...

Congratulations! You are the inventor of a new technological marvel and you have received several offers from various tech companies for the rights to market your new invention. To decide which offer to accept, you must determine the PV of each offer and choose the one that is the highest.

Calculate the PV of each offer listed below using an 8% discount rate. Use the Appendices and then verify your answers using the time value functions on your calculator.

1. _________________   $2,500,000 payable in 10 years.

2. _________________ $500,000 now + $1,000,000 in 10 years.

3. _________________ $250,000 now + $250,000 in 5 years + $500,000 in 10 years.

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jeff jeffy answered 2 years ago
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