Sherwin Williams will receive $20,250 a year for the next 18 years as a result of a picture he has painted. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.

a.	What is the present value of these payments if the discount rate is 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value

$

b.

Should he be willing to sell out his future rights now for $171,000?

	Yes
	No