Industrial process to another firm

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Hate Manufacturing has agreed to license an industrial process to another firm. That firm will pay $5 million when it licenses the process, which may happen at any time during the next 10 years. The firm's interest rate is 8%. What is the present worth if the license is issued at the end of year 3? Year 5? Year 10? (Answer: PW5 = $3.40M)

Reference no: EM131806678

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