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Which option should julian accept

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Question - Julian Baron has written a gaming software and wants to sell all the rights to a gaming company. The company gave him two options, take $200,000 now or receive a royalty of $20,000 a year for the next 25 years, the first payment being made now. The discount rate is 10%. Which option should Julian accept if he assumes an expected return of 9% per annum?

Reference no: EM133169550

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