EXAMPLE 2.8 A local university has initiated a logo-licensing program with the clothier Holister, Inc. Esti- mated fees (revenues) are $80,000 for the first year with uniform increases to a total of $200,000 by the end of year 9. Determine the gradient and construct a cash flow diagram that identifies the base amount and the gradient series.
EXAMPLE 2.8 A local university has initiated a logo-licensing program with the clothier Holister, Inc. Esti- mated fees (revenues) are $80,000 for the first year with uniform increases to a total of $200,000 by the end of year 9. Determine the gradient and construct a cash flow diagram that identifies the base amount and the gradient series.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:EXAMPLE 2.8
A local university has initiated a logo-licensing program with the clothier Holister, Inc. Esti-
mated fees (revenues) are $80,000 for the first year with uniform increases to a total of $200,000
by the end of year 9. Determine the gradient and construct a cash flow diagram that identifies
the base amount and the gradient series.
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