As a venture capitalist you specialize in starting up restaurant chains and selling them 1 year later

for their present value. The families of Kano and Wupas have been selling franchises of their

family restaurants like hotcakes all over the USA. If you open up a Kano-Wupas (yes, I went there)

in downtown Nacogdoches initially costing $2,000,000 with operating cash flows of $250,000

every year forever, what is your rate of return (IRR) and NPV when you sell it one year later?

Assume a required return (cost of capital) of 10%