P10-8. NPV Simes Innovations, Inc., is negotiating to purchase exclusive rights to manu- facture and market a solar-powered toy car.

P10–8. NPV Simes Innovations, Inc., is negotiating to purchase exclusive rights to manu- facture and market a solar-powered toy car. The car’s inventor has offered Simes the choice of either a one-time payment of $1,500,000 today or a series of five year-end payments of $385,000.