You have been issued a patent giving you exclusive rights to sell a new type of software. You believe the patent will produce sales of $241,000 each year as long as the software remains in demand. Assume a discount rate of 4% compounded annually and payments are made at the end of each year. What is the value today of having the patent, assuming sales last for (a) three years, (b) four years, or (c) five years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1. PV of $1. FVA of $1. and PVA of $1)

You have been issued a patent giving you exclusive rights to sell a new type of software. You believe the patent will produce sales of $241,000 each year as long as the software remains in demand. Assume a discount rate of 4% compounded annually and payments are made at the end of each year. What is the value today of having the patent, assuming sales last for (a) three years, (b) four years, or (c) five years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1. PV of $1. FVA of $1. and PVA of $1)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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