You work for a pharmaceutical company that has developed a new

drug. The patent on the drug will last $17$ years. You expect that

the$$ drug's profits will be $$1$ million in its first year and that

this amount will grow at a rate of $3\%$ per year for the next $17$

years. Once the patent$$ expires, other pharmaceutical companies

will be able to produce the same drug and competition will likely

drive profits to zero. What is the present value of the new drug if

the interest rate is $7\%$ per$$ year?$$