You work for a publishing company and are considering bidding for the copyright to Cook Light, Cook Right, a cookbook of low-fat recipes.

While the book was out of print last year, you believe that you can generate \($120,000\) in after-tax cash flows next year, \($100,000\) the year after, and \($80,000\) in the following three years. If your cost of capital is 12%, estimate the value of the copyright.