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9) Consider the following investment in Johnson Enterprises: Youll pay $2,788 today to acquire ownership in Johnson. In return, youll receive nothing for a few

9) Consider the following investment in Johnson Enterprises: Youll pay $2,788 today to acquire ownership in Johnson. In return, youll receive nothing for a few years, but then 4 years from today youll begin to receive an annual annuity stream. The first payment in the annuity stream is expected to be $457. All payments are expected to grow at an annual rate of 1.1%. The last payment in the annuity occurs 14 years from today. Finally, you expect to sell the entire investment for $4,496, 20 years from today. Using a discount rate of 8.7% EAR, use Excels =NPV command to determine the net present value of the investment.

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