ANSWERS TO ALL ASAP PLEASE! NPV Simes Innovations, Inc., is negotiating to...
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ANSWERS TO ALL ASAP PLEASE!
NPV Simes Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a solar-powered toy car. The car's inventor has offered Simes the choice of either a one-time payment of $2,600,000 today or a series of 10 year-end payments of $375,000. a. If Simes has a cost of capital of 12%, which form of payment should it choose? b. What yearly payment would make the two offers identical in value at a cost of capital of 12%? c. What would be your answer to part a of this problem if the yearly payments were made at the beginning of each year? d. The after-tax cash inflows associated with this purchase are projected to amount to $243,750 per year for 15 years. Will this factor change the firm's decision about how to fund the initital investment? a. If Simes has a cost of capital of 12%, the present value of the annuity is $ . (Round to the nearest dollar)
ANSWERS TO ALL ASAP PLEASE!

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