CyberLab has developed a machine that has the capability of revolutionizing the lab robotics industry. The market for the product, however, is very tight with some stiff competition. In order to expand, the company has offered 30% of its equity stakes, along with marketing rights of the product, for a total of $1 million. The three elements of the deal (the equity stake, the marketing agreement, and the technology patent) need to be individually valued before PRICO can accept the deal. The decision will be based on whether or not the total of the values assigned to each element is greater than the investment, or not.
· PRICO'S PRO FORMA INCOME STATEMENT: MARKETING ONLY
· CYBERLAB'S PRO FORMA INCOME STATEMENT: MANUFACTURING ONLY
2. CyberLab Stake
3. Marketing Rights
4. The Patent