1.A maker of electronic surveillance equipment is considering selling to a well-known hardware chain the rights to pay Harte $30,000 and $25,000 at the end of yrs 1 & 2 and to make annual year-end payments of $15,000 in years 3 through 9. A final payment to Harte of $10,000 would be due at the end of year 10.
a)If Harte applies a required rate of return of 12% to them, what is the present value of this series of payments?
a)If Harte applies a required rate of return of 12% to them, what is the present value of this series of payments?