Ivanhoe Inc. charges an initial franchise fee of $$2500000,$ with $$520000$ paid when the agreement is signed and

the balance in $5$ annual payments. The present value of the future payments, discounted at $10\%,$ is $$1501152.$ The

franchisee has the option to purchase $$320000$ of equipment for $$258000.$ Ivanhoe has substantially provided all

initial services required and collectibility of the payments is reasonably assured. The amount of revenue from

franchise fees is

$$520000.$

$$1959152.$

$$2021152.$

$$2500000.$