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You have been issued a patent giving you exclusive rights to sell a new type of software. You believe the patent will produce sales of

You have been issued a patent giving you exclusive rights to sell a new type of software. You believe the patent will produce sales of $174,000 each year as long as the software remains in demand. Assume a discount rate of 5% compounded annually and payments are made at the end of each year. What is the value today of having the patent, assuming sales last for (a) three years, (b) four years, or (c) five years?

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