A company offers $2.5 million for the rights to a patent. If the patent can bring in $500,000 in royalties over the next six years, should the offer be taken? Assume an interest rate of 6% per year. Explain your answer
a. Not enough information is provided
b. Yes
c. No, the offer must be at least $3.0 million
d. No, the offer must be at least $4.0 million