A company has purchased an auto repair business in Tucson Arizona at the beginning of Year 1. One of the assets of the acquired company is a business license issued by the city of tuscon. These licenses are valuable, but they trade infrequently and the last separate sale of a similar license was 10 years ago. Accordingly, the company has determined that an income approach is necessary to determine the fair value of the acquired business license. Because similar licenses are sometimes sublicensed, or rented, in exchange for a royalty fee based on total repair shop revenue, the company can use a relief-from- royalty" method to estimate the fair value of the license. The company has determined that the prevailing market royalty rate for such an arrangement is 2.0%, using this approach, the fair value of the license is the present value of the after-tax royalties that the company is avoiding by owning the license. The company has generated the following inputs for use with the "relief-from-royalty" method: Royalty rate: 2.0% of totally repair shop revenue (before subtracting any expenses) Discount rate: 15.0% Expected repair shop revenue in year 1: S300,000 Expected growth rate in repair shop revenue each year for Years 2-5:10.0%. The company expects rapid revenue growth for th slow to a sustainable long-term level e next five years, but then the growth will Expected growth rate in repair shop revenue each year after five years (Year 6 and beyond): 3.0% Income tax rate: 30% Using this data, estimate the fair value of the business license