Build a simple discounted cash flow model, and estimate the fair value of the AquAdvantage license. You can assume the following:

For discounting purposes, assume that the costs and benefits in Exhibit 5 occur at the end of the year.

There is no terminal valueall years of cash flows are given.

Aqua Bounty will face costs of 2.5 million per year for the first three years, associated with its regulatory trials and FDA submissions.

No interest payments as the company's debts will be paid in full using proceeds from the IPO.

A corporate tax rate of 35%.

A cost of capital of 14%.