Sherwin Williams will receive $20,500 a year for the next 19 years as a result of a picture he has painted. a. What is the present value of these payments if the discount rate is 13 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. $ 139,550.71 X Present value b. Should he be willing to sell out his future rights now for $172,00? No Yes

Sherwin Williams will receive $20,500 a year for the next 19 years as a result of a picture he has painted. a. What is the present value of these payments if the discount rate is 13 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Answer is complete but not entirely correct. b. Should he be willing to sell out his future rights now for $172,00 ? No Yes