What is the present worth of the royalty payments

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Reference no: EM131071051

Corsic Industries is selling its latest invention. The company has had two offers for it and is trying to decide which to take. Bestco Corporation wants to pay Corsic a royalty of $36600 each year for 12 years, but the payments won't begin until the end of year 6. Super Duper, Inc. is willing to pay $222999 for it today. What is the present worth of the royalty payments (in other words, how much are the royalty payments worth today)? Use a 6% interest rate to make the calculation.

Reference no: EM131071051

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