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A company is now licensed to manufacture a patented tool on

A company is now licensed to manufacture a patented tool on which the patent has only 7 more years to run. The company makes 7500 copies of the tool each year and pays the inventor $100 per year plus $0.05 per tool produced. Now the inventor has offered to sell the patent to the company for $3000. If a return of 6% is desired on the investment, should the company buy the patent?

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Econometrics: A company is now licensed to manufacture a patented tool on

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Request for Solution File

Ask an Expert for Answer!!

Econometrics: A company is now licensed to manufacture a patented tool on

Reference No:- TGS0572064

Have a Question? (oR Write a Review)

Recent Questions Asked Econometrics

Q : A man borrows 120000 to buy a home the interest rate is 45

Q : A proton is released from rest inside a region of constant

Q : What strategies have been used to promote collaboration at

Q : How can organizational restructuring enable specific types

Q : A company is now licensed to manufacture a patented tool on

Q : Certain organizations lend themselves naturally to one type

Q : Citing reputable sources explain why having objectives is a

Q : A regulation soccer field for international play is a

Q : Lynn was terminated by wal-mart for violating it

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Request for Solution File

Ask an Expert for Answer!!

Econometrics: A company is now licensed to manufacture a patented tool on

Reference No:- TGS0572064

Recent Questions Asked Econometrics

Q : A man borrows 120000 to buy a home the interest rate is 45

Q : A proton is released from rest inside a region of constant

Q : What strategies have been used to promote collaboration at

Q : How can organizational restructuring enable specific types

Q : A company is now licensed to manufacture a patented tool on

Q : Certain organizations lend themselves naturally to one type

Q : Citing reputable sources explain why having objectives is a

Q : A regulation soccer field for international play is a

Q : Lynn was terminated by wal-mart for violating it

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