Simes? Innovations, Inc., is negotiating to purchase exclusive rights to manufacture and market a? solar-powered toy...

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Simes? Innovations, Inc., is negotiating to purchase exclusiverights to manufacture and market a? solar-powered toy car. The?car's inventor has offered Simes the choice of either a? one-timepayment of ?$2,800,000 today or a series of 10?year-end payments of?$400, 000
a.??If Simes has a cost of capital of 9?%, which form of paymentshould it? choose?
b.??What yearly payment would make the two offers identical invalue at a cost of capital of 9?%?
c.??What would be your answer to part a of this problem if theyearly payments were made at the beginning of each? year???
d.??The? after-tax cash inflows associated with this purchaseare projected to amount to ?$260,000 per year for 15 years. Willthis factor change the? firm's decision about how to fund theinitial? investment?

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Simes? Innovations, Inc., is negotiating to purchase exclusiverights to manufacture and market a? solar-powered toy car. The?car's inventor has offered Simes the choice of either a? one-timepayment of ?$2,800,000 today or a series of 10?year-end payments of?$400, 000a.??If Simes has a cost of capital of 9?%, which form of paymentshould it? choose?b.??What yearly payment would make the two offers identical invalue at a cost of capital of 9?%?c.??What would be your answer to part a of this problem if theyearly payments were made at the beginning of each? year???d.??The? after-tax cash inflows associated with this purchaseare projected to amount to ?$260,000 per year for 15 years. Willthis factor change the? firm's decision about how to fund theinitial? investment?