Question: Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his

  1. Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $175,000, received three years from today. Future cash flows will grow at a rate of 3.5% forever (in perpetuity). What is the time t=0 present value of this technology if Mark can borrow and lend at a rate of 6% per year, compounded annually?

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