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please help John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $910,000. John has used past
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John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $910,000. 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. EVA of S1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years 1-6 7 B 9 1e Amount 591, eee 81, 71.000 61,000 $1,000 of purchased, the restaurant would be held for 10 years and then sold for an estimated $810,000 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) 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.) = Present Value Future Amount $ 91,000 81,000 71.000 61,000 51,000 810.000 10% 10% 10% 109 10% 10% Should the restaurant be purchased Step by Step Solution
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