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Problem 5-4 (Algo) Investment analysis; uneven cash flows [ LO5-3, 5-8] Helga is considering the purchase of a small restaurant. The purchase price listed by

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Problem 5-4 (Algo) Investment analysis; uneven cash flows [ LO5-3, 5-8] Helga is considering the purchase of a small restaurant. The purchase price listed by the seller is 5940,000 . Helga has used past financial information to estirnate that the net cash flows (cash inflows less cash outlows) generated by the restaurant would be as foliows If purchased, the restourant would be held for 10 years and then sold for an estimated $840,000. Required: Determine the present value, assuming that Helga desires a 108 rate of retum on this investment. (Assume that all cash flows occur at the end of the year) Note: Do not round intermediote calculations. Round your final answers to nearest whole dollar amount. Use tobles, Excel, or a financial calculator. (EV of S1. PV of S1. EVA of S1. PVA of S1, EVAD of $1 and PVAD of S1)

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