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You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networ...

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Question:

You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into their systems and is offering to pay you $500,000 in two years, plus $500,000 at the end of each of the following six years for permission to do this. If the appropriate interest rate is 6 percent, what is the present value of the cash flow stream (annuity) that the company is offering you? (Round Annuity Factor to 3 decimal places)

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