Find the present value of the offer


Question: Dr Wolf received this offer for his latest discovery. Thirty percent of the buyer's gross profit on the product for the next four years. The buyer's gross profit margin was 60 percent. Sales in year one were projected to be $2 million and the expected to grow by 40 percent per year. Find the present value of this offer. A 10 percent interest rate should be used.

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Finance Basics: Find the present value of the offer
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