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Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is $810,000. Heiga has used past financial information to

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Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is $810,000. Heiga has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: If purchased, the restaurant would be held for 10 years and then sold for an estimated $710,000. Required: Determine the present value, assuming that Helga desires a 12% rate of return on this investment. (Assume that all cash flows occur at the end of the year.) Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (EV of \$1. PV of \$1. EVA of \$1. PVA of \$1. EVAD of \$1 and PVAD of \$1) \begin{tabular}{|r|c|c|c|} \hline \multicolumn{1}{|c|}{ Future Amount } & \multicolumn{1}{c|}{i=} & n= & Present Value \\ \hline$81,000 & 12% & \\ \hline 71,000 & 12% & \\ \hline 61,000 & 12% & \\ \hline 51,000 & 12% & \\ \hline 41,000 & 12% & \\ \hline 710,000 & 12% & \\ \hline \end{tabular}

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