ou recently received a patent related to a medical device that is used to test for the presence of airborne viruses. A health care private equity firm is interested in the technology and has offered to purchase the patent and all rights to the technology for $300 million, payable in 60 monthly payments of $5 million starting exactly one month from today. If the interest rate implicit in the agreement is 6% APR, compounded monthly, what is the present value of the payments you will receive?
ou recently received a patent related to a medical device that is used to test for the presence of airborne viruses. A health care private equity firm is interested in the technology and has offered to purchase the patent and all rights to the technology for $300 million, payable in 60 monthly payments of $5 million starting exactly one month from today. If the interest rate implicit in the agreement is 6% APR, compounded monthly, what is the present value of the payments you will receive?
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 16P
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You recently received a patent related to a medical device that is used to test for the presence of airborne viruses. A
health care private equity firm is interested in the technology and has offered to purchase the patent and all rights to the
technology for $300 million, payable in 60 monthly payments of $5 million starting exactly one month from today. If
the interest rate implicit in the agreement is 6% APR, compounded monthly, what is the present value of the payments
you will receive?
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