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Wally, president ofWally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 17 17 end-of-year payments starting one

Wally, president ofWally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 17

17 end-of-year payments starting one year from now. The first two payments would be $27 comma 000

27,000 and $ 24 comma 000

$24,000 in one and two yearsrespectively, and then $16 comma 000

16,000 per year after that for 15

15 years. If Wally requires a return of 9.8 %

9.8%, what is the present value of this stream of cashflows?

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