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Return to question Woody Lightyear is considering the purchase of a toy store from Andy Enterprises. Woody expects the store will generate net cash flows
Return to question Woody Lightyear is considering the purchase of a toy store from Andy Enterprises. Woody expects the store will generate net cash flows (cash inflows less cash outflows) of $42,000 per year for 15 years. At the end of the 15 years, he intends to sell the store for $420,000. To finance the purchase, Woody will borrow using a 15-year note that requires 8% interest. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.) Required: What is the maximum amount Woody should offer Andy for the toy store? (Assume all cash flows occur at the end of each year.) X Answer is complete but not entirely correct. Total present value $ 494,940.60 X
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