Question
Anita wants to use the $366,900 proceeds ($250,000 + $11,000 + $105,900 = $366,900) from sale of the securities to open a fast-food franchise under
Anita wants to use the $366,900 proceeds ($250,000 + $11,000 + $105,900 = $366,900) from sale of the securities to open a fast-food franchise under a 10-year contract. What net annual cash inflow must the store generate for Anita to earn a 12% return over the 10-year period? Assume that the project will yield same annual cash inflow each year. Anita will not receive back her original investment at the end of the contract. (Round discount factor(s) to 3 decimal places, other intermediate calculations and final answer to the nearest whole dollar.) |
Annual net cash inflow | $ |
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