This paper circulates around the core theme of A best-selling author decides to cash in on her latest novel by selling the rights to the book’s royalties for the next six years to an investor. Royalty payments arrive once per year, starting one year from now. In the first year, the author expects $4 together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
A best-selling author decides to cash in on her
latest novel by selling the rights to the book’s royalties for the next six
years to an investor. Royalty payments
arrive once per year, starting one year from now. In the first year, the author expects
$400,000 in royalties, followed by $300,000, then $100,000, then $10,000 in the
three subsequent years. If the investor
purchasing the rights to royalties requires a return of 7% per year, what
should the investor pay?