medium · Principles of Finance
A patent is expected to generate $40,000 in annual royalties for 10 years, but legal delays mean the first royalty check won't arrive until 3 years from today. Using a 12% discount rate, calculate the present value of these royalties.
- $226,008.93
- $180,172.93
- $160,877.90
- $201,793.69
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