You have been issued a patent giving you exclusive rights to sell a new type of software.

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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 $200,000 each year as long as the software remains in demand. Assume a discount rate of 7% compounded annually. 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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