Value of a mixed stream. Harte Systems, Inc., a maker of electronic survillance equipment, is considering selling the rights to market its home security system to a well-known hardware chain. The proposed deal calls for the hardware chain to pay Harte $ and $ at the end of years 1 and 2 and to make annual year-end payments of $ in years 3 through 9. A final payment to Harte of $ would be due at the end of year 10.

a. Select the time line that represents the cash flows involved in the offer.

b. If Harte applies a required rate of return of % to them, what is the present value of this series of payments?

c. A second company has offered Harte an immediate one-time payment of $ for the rights to market the home security system. Which offer should Harte accept?