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In the following case, the mixed end-of-period cash flow stream has an annuity embedded within it. Calculate the present value of the cash flow stream,
In the following case, the mixed end-of-period cash flow stream has an annuity embedded within it. Calculate the present value of the cash flow stream, assuming a 10% discount rate. The payment for year 1 is received at the end of year 1, or one year from today. Round to the nearest cent. Year Cash Flow 1 $8,000 2 $4,000 3 $2,000 4 5 6 $2,000 $2,000 $2,000 $5,000 7 Present Value ($) = Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 13 end-of-year payments starting one year from now. The first two payments would be $27,000 and $23,000 in one and two years respectively, and then $19,000 per year after that for 11 years. If Wally assumes a discount rate of 10.7%, what is the present value of this stream of cash flows? Round to the nearest cent
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