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Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is $920,000. 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 $920,000. 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 Amount $ 92,000 7 82,000 8 72,000 9 10 62,000 52,000 If purchased, the restaurant would be held for 10 years and then sold for an estimated $820,000. Required: Determine the present value, assuming that Helga desires a 10% 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 i = n = Present Value $ 92,000 10% 82,000 10% 72,000 10% 62,000 10% 52,000 10% 820,000 10% $ 0 Should the restaurant be purchased?

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