Value of a mixed stream Harte Systems Inc., a maker of electronic surveillance 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 $$30,000$ and $$25,000$ at the end of years $1$ and $2$ and to make annual year$-$ end payments of $$15,000$ in years $3$ through $9.$ A final payment to Harte of $$10,000$ would be due at the end of year $10.$

a$.$ Lay out the cash flows involved in the offer on a timeline.

b$.$ If Harte applies a required rate of return of $12\%$ 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

$$100,000$ for the rights to market the home security system. Which offer should Harte accept?