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Problem:

You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into their systems and is offering to pay you $506,000 today, plus $506,000 at the end of each of the following six years for permission to do this.

Requirement:

Question: If the appropriate interest rate is 8 percent, what is the present value of the cash flow stream that the company is offering you?

Note: Explain in detail and show all computations in proper way.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91173308

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