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Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 15 end-of-year payments starting one
Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 15 end-of-year payments starting one year from now. The first two payments would be $26,00 and $23,000 in one and two years respectively, and then $18,000 per year after that for 13 years. If Wally requires a return of 10.3%, what is the present value of this stream of cash flows? What is the present value of this stream of cash flows? $ (Round to the nearest cent.)
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To calculate the present value PV of this stream of cash flows we will discount each payment back to the present using the required return rate of 103 ...Get Instant Access with AI-Powered Solutions
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