1. Suppose your firm wants to sell a patent expected to produce $80,000 a year in revenue for the life of the patent (8 years). If the interest rate is 4%, ... a. What would be the appropriate asking price today for selling the patent? b. If revenue increased by $2,000 a year, what would be the appropriate asking price today for selling the patent? c. If revenue increased by 3% per year, what would be the appropriate asking price today for selling the patent? d. Suppose the buyer of the patent had the option to renew the patent at the end of 8 years. Doing so would provide another 8 years of $80,000 in revenue but cost the buyer a one-time fee of $100,000 after 8 years to renew the patent. How much could your firm charge the buyer now? 4. Suppose your firm was considering a project (Project A) with the following properties: Initial cost of $500,000 Yearly maintenance cost of $20,000 Yearly revenue generated of $100,000 10-year life of the project a. What is the internal rate of return on the project? b. If you had a second option for a project (Project B) with an initial cost of $350,000 and a 12% rate of return for 10 years, which project should you firm pursue if your firm's MARR is i. 2% ii. 8% iii. 11%