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please help find the correct answers for the boxes with the red x's John Wiggins is considering the purchase of a small restaurant. The purchase
please help find the correct answers for the boxes with the red x's John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $860,000. 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: (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years Amount 1-6 $86,800 7 76,000 8 66,000 9 56,000 10 46,000 I purchased, the restaurant would be held for 10 years and then sold for an estimated $760,000 Required: Determine the present value, assuming that John desires a 12% 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.) Answer is complete but not entirely correct. Future Present Amount n Value 36,000 12% 13 $ -360,000 3 78,000 12% 4 $ 353,546 56,000 12% 0 $ 34,379 % 56.000 12% 0 % S 25,656 46,000 12% os 20.1943 760,000 12% 0X s 259,510 S - 165,715 should the restaurant be purchased? Yos x
please help find the correct answers for the boxes with the red x's
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