I guess the correct answer is legal
U.S.-based Royal Corporation is hesitant about entering into a licensing agreement with Hexagon, Inc., a company from the Monaslu Republic, due to the likelihood that Hexagon will opportunistically break a contract or expropriate property rights. The type of risk Royal Corporation trying to avoid is legal.
Lеgal risk is thе risk οf financial οr rеputatiοnal lοss that can rеsult frοm lack οf awarеnеss οr misundеrstanding οf, ambiguity in, οr rеcklеss indiffеrеncе tο, thе way law and rеgulatiοn apply tο yοur businеss, its rеlatiοnships, prοcеssеs, prοducts and sеrvicеs.
Answer:
Investment period = 24 years
Explanation:
The total amount that an investment made today would become if invested at a particular rate for certain number of years is known as the future value.
The $1,200,000 is the desired future value, the $296, 375 is the present value and the 6% is the interest rate.
FV = PV × (1+r)^n
1,200,000 = 296,375 × (1.06)^(n)
(1.06)^(n) = 1200000/96,375
(1.06)^(n) =4.048924504
find the log of both sides
n log 1.06= log 4.048924504
n= log 4.048924504/log 1.06
n = 24
It will take 24 years
