Bob & co. has a product line that has 20 years of life remaining. It generates $500,000 of annual profit, growing at 15% per year. The company to which it belongs has a cost of capital of 25%. What is the minimum the company should demand

Please see our guidelines for submitting homework at the top of this page:
Discussions - alt.sys.pc-clone.compaq | Google Groups (http://groups.google.com/group/alt.sys.pc-clone.compaq/topics)