A manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture and market the inventor's patented design. Plan 1 calls for an immediate single payment of $52,343. Plan 2 calls for an annual payment of $2,273 plus a royalty of $1.72 for each unit sold. The remaining life of the patent is 10 years. MARR is 10% per year. What must be the uniform annual sales to make Plan 1 and Plan 2 equally attractive? Round your answer. Enter your answer as: 12345

A manufacturer offers an inventor the choice of two contracts for the exclusive right to manufacture and market the inventor's patented design. Plan 1 calls for an immediate single payment of $52,343. Plan 2 calls for an annual payment of $2,273 plus a royalty of $1.72 for each unit sold. The remaining life of the patent is 10 years. MARR is 10% per year. What must be the uniform annual sales to make Plan 1 and Plan 2 equally attractive? Round your answer. Enter your answer as: 12345

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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