Novell Electronics Recently Bought a Patent That Will Allow It

question 88

Short Answer

Novell Electronics recently bought a patent that will allow it to bring a new product to market in 2½ years. Sales forecasts indicate that the product will increase the quarterly profits by $28,000. If the patent cost $150,000, how long after the date of the patent purchase will it take for the additional profits to repay the original investment along with a return on investment of 15% compounded quarterly? Assume that the additional profits are received at the end of each quarter.

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Definitions:

Discretionary Influence

Refers to the power or authority a person has to make decisions or judgments at their own discretion, often in an organizational or managerial context.

Role Ambiguity

The uncertainty or lack of clarity about expectations, responsibilities, and duties associated with a particular job role.

Leader Personality

The set of personal qualities and traits that influence a leader's effectiveness in guiding and influencing their followers.

Charisma

A personal attribute that enables an individual to attract, influence, and inspire others through their presence, speech, or actions.