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Essay text:
Is a company that manufactures domestic appliances using…‘environmentally friendly’ technology’ (Major Project Autumn 2006). It currently produces a technology called Mark I for which it receives a licence fee and royalties from an investing company, Otori. It has entered an agreement as of 1 July 2004 with Otori to help develop a new technology Mark II, which details the payment of monthly development fee over three years and a decision at 31 December 2007 either to:
- Scenario 1: Purchase the company and rights to the technology from Envirotech
- Scenario 2: Continue paying a licence fee plus royalties for the use of the technology
- Scenario 3: Discontinue the relationship insofar as the Mark II technology, but continue paying the licence fee and royalties for Mark I
The aim of this financial document is to analyse whether it is worthwhile investing a minimum of $50 000 in Envirotech, based on the fact that ‘no profits are to be distributed prior to June 2009’...
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