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If a Franchised restaurant had revenue of $1,500,000, EBITDA of $250,000, and a contractual requirement to set aside a 5% of revenue FFE reserve annually

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If a Franchised restaurant had revenue of $1,500,000, EBITDA of $250,000, and a contractual requirement to set aside a 5% of revenue FFE reserve annually (this would be deducted from EBITA, how much would this asset be worth if the capitalization rate were 7.5% ? Show your work

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