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Wally, president ofWally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 19 end-of-year payments starting one year
Wally, president ofWally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 19 end-of-year payments starting one year from now. The first two payments would be $25,000 and $22,000 in one and two yearsrespectively, and then $18,000 per year after that for 17 years. If Wally requires a return of 10.2%, what is the present value of this stream of cashflows?
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