Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive

13

end-of-year payments starting one year from now. The first two payments would be

$27,000

and

$23,000

in one and two years respectively, and then

$16,000

per year after that for

11

years. If Wally requires a return of

9.2%,

what is the present value of this stream of cash flows?

What is the present value of this stream of cash flows?

$nothing

(Round to the nearest cent.)