At the beginning of 2015,market analysts expect Atlantis Company,holder of a valuable patent,to earn the following stream of economic profits over the next five years.At the end of five years,Atlantis will lose its patent protection,and analysts expect economic profit to be zero after five years. If investors apply an annual risk-adjusted discount rate of 15%,the value of Atlantis Company in 2015 is $______________________,which is also the maximum price investors would be willing to pay for Atlantis Company.

Question

At the beginning of 2015,market analysts expect Atlantis Company,holder of a valuable patent,to earn the following stream of economic profits over the next five years.At the end of five years,Atlantis will lose its patent protection,and analysts expect economic profit to be zero after five years.  If investors apply an annual risk-adjusted discount rate of 15%,the value of Atlantis Company in 2015 is $______________________,which is also the maximum price investors would be willing to pay for Atlantis Company.

Quizplus · Accepted Answer

The Answer of At the beginning of 2015,market analysts expect Atlantis Company,holder of a valuable patent,to earn the following stream of economic profits over the next five years.At the end of five years,Atlantis will lose its patent protection,and analysts expect economic profit to be zero after five years.  If investors apply an annual risk-adjusted discount rate of 15%,the value of Atlantis Company in 2015 is $______________________,which is also the maximum price investors would be willing to pay for Atlantis Company.

At the Beginning of 2015,market Analysts Expect Atlantis Company,holder of a Valuable