Your firm has had the market cornered on the latest wonder pharmaceutical production for many years. However, the exclusivity rights on drug have expired, and competitors are expected to quickly begin manufacturing generics. Marketing reports that next year’s (Y1) sales are estimated at $15,000,000, and sales are expected to decrease by 10% every year. If your firm uses a planning horizon of 10 years and the interest rate is 9%:
A) What is the equivalent uniform annual value of the expected sales?
B) What are the expected sales in the 8th year?