1 an eternal patent contract states that the patentee will, Ask an Expert

Finance

1. An eternal patent contract states that the patentee will pay the patentor a fee of $1.5 million next year.

The contract terms state a fee growth with the inflation rate, which runs at 2% per annum. The appropriate cost of capital is 14%. What is the value of this patenting contract?

2. How would the patent contract value change if the first payment did not occur next year, but tonight?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91990066

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