Alla Aeroshoes is in the business of designing and manufacturing running shoes for long distance runners. They are considering a $100 million upgrade to their production line for the iPhone/iPad/iWatch connected shoe that has Bluetooth connectivity. The potential cash flow is estimated at net revenues of $460 million per year for four years. Recently, they were advised of potential patent infringement and to eliminate this problem they are considering buying a license. SohnCo will sell a license that is good for four years of exclusive use of the patent and associated intellectual property. Alla Aeroshoes uses a corporate MARR of 14% and their risk-free alternatives are 6%. The VP of Engineering at Alla Aeroshoes estimates market volatility in demand is 50%. The VP of Marketing estimates market volatility in demand at 35%.