math the present value forw normal work please I can't read tothers Offer I. The buyerin this case was Smythe Manufacturing. They offered Dr. Miller $2 million now plus $100, 000 each year beginning atthe end of year six and continuing through the end of year fifteen. You are Dr. Miller's financial advisor and you feel thatgiven the associated risks to this payment stream, a 10% interest (discount) rate should be used to determine the presentvalue of the offer. Offer II. The buyer in this case was Brouwer Pharmaceutical. They offered 40 percent of their grossprofit on the product for the next four years, with payments beginning at the end of the first year. Brouwer's gross profitmargin was 60%. Sales in year one were projected to be $3 million and are forecasted to grow by 30 percent each yeanthereafter. You are Dr. Miller's financial advisor and you feel that given the associated risks to this payment stream, an8% interest (discount) rate should be used to determine the present value of the offer.
math the
Step by step
Solved in 3 steps with 2 images
