3. Consider an innovation that is expected to generate $100,000 in profits at the end of each of the next 4 years, and after that market competition is expected to drive the profits from the innovation to zero. If the interest rate (or discount rate) is 10%, how much should the firm be willing and able to pay to research and develop the innovation

Juanita and sam attend a beach party and notice that the local beach appears to have a great deal more trash washed up on shore than it did when they were young. the water doesn't appear nearly as clear, and there seems to be less evidence of small water creatures living in the shallows. an afternoon at the local library convinces them that one major cause is the new factory nearby. after some discussion, they decide their next step should be identifying the cause of the changes identifying the problem picketing the guilty factory lobbying their elected representatives to complain about the problem talking to a local environmental group about solutions