Friday
August 29, 2014

Homework Help: Finance

Posted by Anonymous on Saturday, April 17, 2010 at 4:49pm.

1. Following is the projected net income stream associated with the use of Zartek technology. (Note: this net income stream does not take into account that Zartek’s owners invested $2,000 to develop Zartek in Year 0.) Globus Maximus Enterprises would like to buy the Zartek patent.

How could the net income data be used to help establish the dollar value of the technology (assume a prevailing interest rate for the five year time period as 7% per year)?

Show your reasoning in establishing a sales price. Be realistic in your analysis (i.e., are there other factors that should be taken into account than what is covered here?).

Net income:

Net income:

Year 1 Year 2 Year 3 Year 4 Year 5
$1,000 $1,300 $1,200 $1,300 $1,200

Initial investment in Zartek technology: $2,000

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

business - 1.Following is the projected net income stream associated with the ...
FINANCE - To achieve the benefts from the use of high financial leverage does a ...
finance (efficiency of management) - The best indication of the operational ...
Finance - to achieve the benefits of high financial leverage does a company need...
Accounting - Moon Shoe Factory is an investment center and is responsible for ...
Profit margin ratio - Could someone please help? I have to compute the profit ...
Account - Here is my question, please help!!! 5. Assume that Z company's chief ...
finance (firm's net income) - If a firm has a break-even point of 20,000 units ...
Finance - Suppose you just inherited a gold mine. This gold mine is believed to ...
Finance - P5. Use your knowledge of income statements to fill in the missing ...

Search
Members