Question 1 (25 marks) On 1 January 2017, your company was granted two patents covering a popular Japanese animation character that has been produced and marketed profitably for a long time. One patent covers the manufacturing process and the other covers the related products The senior vice president of your firm tells you that these patents represent the most significant breakthrough in the industry for the past 20 years. The products have been marketed under several registered trademarks. Licenses under the patents have already been granted by the owner to other manufacturers around the world and are producing substantial royalties On 1 June 2018, your firm commenced patent infringement actions against several companies whose name you recognize as those of substantial and prominent competitors. The senior vice president of your firm is optimistic that these lawsuits will result in permanent injunctions against the manufacturers and sale of the infringing products as well as collection of damages for loss of profit caused by the alleged infringement The senior vice president of your firm suggests that the patents should be recorded at value-in-use, based on the discount value of expected net royalty receipts Required a Explain in detail the meaning of discounted value of expected net receipts'. (7 marks) b How should this value be calculated for net royalty receipts? (6 marks)