Assume an interest rate of per year

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A company offers $2.5 million for the rights to a patent. If the patent can bring in $500,000 in royalties over the next six years, should the offer be taken? Assume an interest rate of 6% per year. Explain your answer

a. Not enough information is provided

b. Yes

c. No, the offer must be at least $3.0 million

d. No, the offer must be at least $4.0 million

Reference no: EM13737799

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