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16. Gorgeous George is evaluating a five-year investment in an oil change franchise, which costs $200,000 paid up front. Projected net operating cash flows are

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16. Gorgeous George is evaluating a five-year investment in an oil change franchise, which costs $200,000 paid up front. Projected net operating cash flows are $60,000 per year. If Gorgeous George buys shares in other investments instead of the franchise, he expects an annual return of 12%. Which is true? A. The future value of the franchise is $216,287 B. The net present value of the franchise is $16,287 C. The future value of the franchise is $138,900 D. The net present value of the franchise is $6,287 E. None of the above

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