A local university has initiated a logo-licensing

program with the clothier Holister, Inc. Estimated

fees (revenues) are $80,000 for the first year with

uniform increases to a total of $200,000 by the end

of year 9. Determine the gradient and construct a

cash flow diagram that identifies the base amount

and the gradient series.

Find the present equivalent of the cash flow given

the interest rate i=10%.