$18$

$10$

$135,000$

Bruce expects to sell the restaurant after $10$ years for an estimated $$1,250,000.($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)($Use tables, Excel, or a financial calculator. Round your answer to $2$ decimal places.$)$

Required:

$1-$a$.$ Calculate the total present value of the net cash flows if Bruce wants to make at least $10\%$ annually on his investment. $($Assume all cash flows occur at the end of each year. Be sure to include the selling price in your calculation.$)$

$1-$b$.$ Assuming the restaurant is listed for sale at $$1,050,000,$ should he purchase the restaurant?

Complete this question by entering your answers in the tabs below.

Calculate the total present value of the net cash flows if Bruce wants to make at least $10\%$ annually on his investment. $($Assume all cash flows occur at the end of each year. Be sure to include the selling price in your calculation.$)$

Total present value