3. Consider an innovation that is expected to generate $100,000 in profits at the end of each of the next 4 years, and after that market competition is expected to drive the profits from the innovation to zero. If the interest rate (or discount rate) is 10%, how much should the firm be willing and able to pay to research and develop the innovation? beapet at the end at the end of each of each of next years $100.000 Interrat Rate Firm by Willing $ able to pay te Kosearch and develop the vinovation & the nel proant value of Bofibus greater than or equal to the initial investment NPO of profits toom Ko1004 ooo 316 Required aru s 3163984 54 4. Now consider the same firm as in question 3. Suppose that the firm can apply for a patent, which would guarantee the firm profits of $100,000 at the end of each of the next twenty years, at which point market entry would drive profits to zero. How much should the firm be willing and able to pay to research, develop, and patent the innovation now? By how much does this change if the interest rate falls from 10% to 5%