Royalty rate assessment
The 'Present Value' method of capitalizing flows

Royalty rate assessment

Section Title: The 'Present Value' method of capitalizing flows
Table Section Text: None

Year -->	1	2	3	4	5

Sales	700	900	1200	1600	2200

OPR	75	105	130	200	280

Royalty	60	36	48	64	88

Discount Factor,10%	0.9091	0.8264	0.7531	0.6830	0.6209

Discounted OPR	68.2	86.8	97.7	136.6	173.9

Discounted R	54.5	29.8	36.1	43.7	54.6

Sentence(s)

$0.8264 is the PV for two years at the 10% rate.

final_sentence: $0.8264 is the PV for two years at the 10% rate.