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John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $990,000. John has used past financial information

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John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $990,000. John 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: (EV of Si. PV of S1. FVA of S1. PVA of S1, FVAD of $1 and PVAD of SD (Use appropriate factora) from the tables provided.) 1-6 $99,800 7 89,000 8 79,080 9 69,800 10 59,00 If purchased, the restaurant would be held for 10 years and then sold for an estimated $890,000 Required: Determine the present value, assuming that John desires a 10% rate of return on this investment (Assume that all cash flows occur at the end of the year) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) Future 99,000 89,000 79,000 69,000 59 000 890,000| 10% 10% 10% 10% 10% 10% Should the restaurant be purchased

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