Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,070,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years

Years Amount 1-6 8 10 S 87,000 (each year) 97,000 107,000 117,000 127,000 Bruce expects to sell the restaurant after 10 years for an estimated $1,170,000. (FV of $1, PV of $1, FVA of $1, and PVA of S1) Required 1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 11% annually on his investment (Assume all cash flows occur at the end of each year.) tal present value 1-b. Should he purchase the restaurant? O No O Yes