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Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is $900,000. Helga has used past financial information

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Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is $900,000. Helga 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: Years 1-6 7 8 9 10 Amount $ 90,000 80,000 70,000 60,000 50,000 If purchased, the restaurant would be held for 10 years and then sold for an estimated $800,000. Required: Determine the present value, assuming that Helga desires a 9% 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. (FV of $1. PV of $1. EVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) Future Amount nw Present Value $ 90,000 9% 80,000 9% 70,000 9% 60,000 9% 50,000 9% 800,000 9% $ Should the restaurant be purchased?

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