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SHORT ANSWER QUESTIONS 24. Justin Ball has developed a patent and wants to sell all...

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SHORT ANSWER QUESTIONS 24. Justin Ball has developed a patent and wants to sell all the rights to a gaming company. The company gave him two options, take $300,000 now or receive a royalty of $30,000 a year for the next 25 years, the first payment being made now and subsequent payments be done at the beginning of each year. Which option should Julian accept if he assumes an expected return of 8% per annum? Answer with proper calculation and explanation. [4 Marks]

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