Royalty rate assessment
The 'Present Value' method of capitalizing flows
Table:
Table B. Illustrative Projected Flows of OP and Royalty of an Enterprise [Unit:$000]

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

Based on the data within the table titled Royalty rate assessment, section The 'Present Value' method of capitalizing flows, write a short sentence answering the following question: What is the 'Present Value' for two years at the 10% rate? Respond with the correct answer in JSON format as {"answer": "YOUR ANSWER"}.

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