11. years, how much should he pay to acquire this business if he requires an 11% rate of return?

If John can buy a business that promises a $15,500 cash flow every year for the next 5

1. A $50,274.35

2. B $50.300.87

3. C $56,674.35

4. D $57,166.87

5. E $57,286.40

12. If John purchased the above business for $55,000, then his NPV was... and he ...value

1. A $2,286.40; destroyed

2. B -$9,533.13; created

3. C $666.87.13; created

4. D $766.87.23; created

5. E None of the above