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5 points Save Answer Wynne Inc. charges an initial franchise fee of $1,380,000, with $300,000 paid when the agreement is signed and the balance in
5 points Save Answer Wynne Inc. charges an initial franchise fee of $1,380,000, with $300,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is $818,808. The franchisee has the option to purchase $180,000 of equipment for $144,000. Wynne has substantially provided all initial services required and collectibility of the payments is reasonably assured. The amount of revenue from franchise fees is $1,082,808. $ 300.000 $1,118,808. $1,380,000
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