1) You are planning to open a new franchised Chuck-ful-A restaurant in Montreal. This new operation is expected to require an initial investment of $ 20 million dollars in property and equipment and bring in a net operating monthly profit of $ 250,000 for the next 20 years. However, since you are franchising, you will have to pay Chuck-ful-A an initial franchise fee of $10 000 and a $ 4000 monthly fee to rent equipment. As a franchisee, you also must pay Chuck-ful-A 15% of your sales. The cost of capital at a nominal rate of 7.5 % convertible semi-annually, find i (the periodic rate of interest).

2) You are planning to open a new franchised Chuck-ful-A restaurant in Montreal. This new operation is expected to require an initial investment of $ 20 million dollars in property and equipment and bring in a net operating monthly profit of $ 250,000 for the next 20 years. However, since you are franchising, you will have to pay Chuck-ful-A an initial franchise fee of $10 000 and a $ 4000 monthly fee to rent equipment. As a franchisee, you also must pay Chuck-ful-A 15% of your sales. The cost of capital at a nominal rate of 7.5 % convertible semi-annually, find p (the equivalent rate of Interest per payment period).

3) You are planning to open a new franchised Chuck-ful-A restaurant in Montreal. This new operation is expected to require an initial investment of $ 20 million dollars in property and equipment and bring in a net operating monthly profit of $ 250,000 for the next 20 years. However, since you are franchising, you will have to pay Chuck-ful-A an initial franchise fee of $10 000 and a $ 4000 monthly fee to rent equipment. As a franchisee, you also must pay Chuck-ful-A 15% of your sales. The cost of capital at a nominal rate of 7.5 % convertible semi-annually. Calculate the present value of the cash inflow.

4) You are planning to open a new franchised Chuck-ful-A restaurant in Montreal. This new operation is expected to require an initial investment of $ 20 million dollars in property and equipment and bring in a net operating monthly profit of $ 250,000 for the next 20 years. However, since you are franchising, you will have to pay Chuck-ful-A an initial franchise fee of $10 000 and a $ 4000 monthly fee to rent equipment. As a franchisee, you also must pay Chuck-ful-A 15% of your sales. The cost of capital at a nominal rate of 7.5 % convertible semi-annually. Calculate the present value of the net cash flow.