VALUING A CHAIN OF MCDONALD'S RESTAURANTS James and Mary Watson own a small chain of McDonald's restaurants that is valued at $2.300.0XX. They believe that the chain will grow in value at 12% per year compounded annually for the next 5 years. If they sell the chain, the funds will be invested at a rate of 6% compounded semiannually. They expect infla- tion to be 4% per year for the next 5 years. Ignore taxes, and answer the follow- ing, rounding answers to the nearest dollar at each step. McDonald's 1. Find the future value of the chain after 5 years. Then find the price they should sell the chain for if they wish to have the same future value at the end of 5 years. 2. Find the future value of the chain if it grows at only 2% per year for 5 years. Then find the price they should ask for the chain given a 2% growth rate per year. 3. 3. What future value would the chain be worth if it grew at their expected rate of inflation? Find the price they should ask for the chain if it grows at the rate of inflation 4. Complete the following table. Market Value Today Growth Rate Future Value 2% 4% (inflation) 12%