1) Alpha Company signs a contract to sell the use of its patented manufacturing technology to Delta Corp for 15 years. The contract for this transaction stipulates that Delta Corp pays Alpha $18,000 at the end of each year for the use of this technology. Using a discount rate of 9%, what is the value in use of the patented manufacturing technology? To calculate, use (a) factor Table PV.1, (b) a financial calculator, or (c) Excel function PV.
1) Alpha Company signs a contract to sell the use of its patented manufacturing technology to Delta Corp for 15 years. The contract for this transaction stipulates that Delta Corp pays Alpha $18,000 at the end of each year for the use of this technology. Using a discount rate of 9%, what is the value in use of the patented manufacturing technology? To calculate, use (a) factor Table PV.1, (b) a financial calculator, or (c) Excel function PV.
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 6EB: Calico Inc. purchased a patent on a new drug it created. The patent cost $12,000. The patent has a...
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