Annalise Genric wants to open a restaurant in a historic building. The property can be leased for

Question:

Annalise Genric wants to open a restaurant in a historic building. The property can be leased for 20 years, but not purchased. She believes her restaurant can generate a net cash flow of $76,000 the first year and expects an annual growth rate of 4 percent thereafter. If a of 15 percent is used to evaluate this business, what is the present value of the cash flows that it will generate?
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...