NPV

System
System Posts: 100,534 🤖 Admin 🤖
I need to know what I should offer a company for an early termination of a patent license contract.

Payments of $400,000 would normally be made on the 1st July 2006 and on the anniversary until July 2009. A total of $1,600,000.

I wish to terminate this on the 31st December 2005 and want to know the NPV.
I would assume a rate of 6% for this.

I would appreciate it if you could please let me know the calculation for this to enable me to review different scenarios.

Thanks and regards.
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