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Problem 7, Chapter 10. Entrepreneurial Finance 6th edition. Philip J. Adelman, Alan M. Marks. Answer? Kay Sadilla is considering investing in a franchise that requires

Problem 7, Chapter 10. Entrepreneurial Finance 6th edition. Philip J. Adelman, Alan M. Marks. Answer?

Kay Sadilla is considering investing in a franchise that requires an intial outlay of $75,000. She is conducting research and found that after-tax cash flows on the investment should be about $15,000 per year for the next 7 years. The franchiser stated that Kay would generate a 20 percent return. Her cost of capital is 10 percent. find the following:

A) The PVB

B) The PVC

C) The NPV

D) The IRR

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