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Brief Exercise 5 - 1 5 ( Algo ) Present value; ordinary annuity [ LO 5 - 8 ] You have been issued a patent
Brief Exercise Algo Present value; ordinary annuity LO
You have been issued a patent giving you exclusive rights to sell a new type of software. You believe the patent will produce sales of $ each year as long as the software remains in demand. Assume a discount rate of compounded annually and payments are made at the end of each year. What is the value today of having the patent, assuming sales last for a three years, b four years, or c five years?
Note: Use tables, Excel, or a financial calculator. Round your answers to decimal places. FV of $ PV of $ FVA of $ and PVA of $
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