Question: Brief Exercise 5-15 (Static) Present value; ordinary annuity [LO5-8] You have been issued a patent giving you exclusive rights to sell a new type

Brief Exercise 5-15 (Static) Present value; ordinary annuity [LO5-8] You have been

Brief Exercise 5-15 (Static) Present value; ordinary annuity [LO5-8] 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? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (EV of $1. PV of $1. EVA of $1, and PVA of $1) Annuity Payment Annual Rate Interest Compounded Period Invested Present Value of Annuity a. $ 200,000 7% Annually 3 years b. 200,000 7% Annually 4 years C 200,000 7% Annually 5 years

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