(20 pts) Pat the statistician was saddened at the news that her uncle, Jimmy Buffett, passed away recently. Jimmy, recognizing his own mortality and wanting to be proactive in assisting in the settlement of his estate, had asked Pat to develop a statistical model of expected cashflows from his song royalties.

Pats modelling of royalties for recently deceased superstar musicians, estimates that royalties will double in the first two years after death, return to the initial time zero level in year three, and then decrease by 15 percent per year thereafter. If we assume: The modelled cashflows are correct

All cashflows will be paid at the end of each year

The risk-adjusted discount rate should be 9.5 percent

Last years royalties were $20,000,000

What would the value of these song royalties be worth?