Jewels Hair Design Studios would like to purchase another hair salon that is being sold in...
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Jewels Hair Design Studios would like to purchase another hair salon that is being sold in a neighboring town for $500,000 Assume cash flows occur at the end of the year. Based on past volume of sales Jewels mates the net cash flows that would be generated by the salon (Click the can to view the net cash flows) After six years, Jewels can sell the salon for $300,000 (Click the icon to view the Future Value of State (Click the can to view the Future Value of an Ordinary Annuity table (Click the icon to view the Future Value of an Annuity Detable Requirement If the interest rate on this investment is 0% compounded annually, should Jewels purchase the salon? (Click the icon to view the Present Value of $1 table) (Click the icon to view the Present Value of an Ordinary Annuity table) (Click the icon to view the Present Value of an Annuly Due table) First calculate the present value of the cash infows from the new salon. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadshest for your calculations. Use the same method for at calculations. If using present and future value takes or the formula method, use factor amounts rounded to ve decimal places, XXXXXX Round intermediary bumency computations and your final answer to the nearest cent. XXXX) The present value of the cash inflows from the new salon amounts to purchase the salon Data table Years Cash Flows 1-3 $ 00,000 4 70,000 " 80,000 6 60,000 Jewels Hair Design Studios would like to purchase another hair salon that is being sold in a neighboring town for $500,000 Assume cash flows occur at the end of the year. Based on past volume of sales Jewels mates the net cash flows that would be generated by the salon (Click the can to view the net cash flows) After six years, Jewels can sell the salon for $300,000 (Click the icon to view the Future Value of State (Click the can to view the Future Value of an Ordinary Annuity table (Click the icon to view the Future Value of an Annuity Detable Requirement If the interest rate on this investment is 0% compounded annually, should Jewels purchase the salon? (Click the icon to view the Present Value of $1 table) (Click the icon to view the Present Value of an Ordinary Annuity table) (Click the icon to view the Present Value of an Annuly Due table) First calculate the present value of the cash infows from the new salon. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadshest for your calculations. Use the same method for at calculations. If using present and future value takes or the formula method, use factor amounts rounded to ve decimal places, XXXXXX Round intermediary bumency computations and your final answer to the nearest cent. XXXX) The present value of the cash inflows from the new salon amounts to purchase the salon Data table Years Cash Flows 1-3 $ 00,000 4 70,000 " 80,000 6 60,000
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