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Woody Lightyear is considering the purchase of a toy store from Andy Enterprises. Woody expects the store will generate net cash flows (cash inflows less
Woody Lightyear is considering the purchase of a toy store from Andy Enterprises. Woody expects the store will generate net cash flows (cash inflows less cash outflows) of $48,000 per year for 15 years. At the end of the 15 years, he intends to sell the store for $480,000. To finance the purchase, Woody will borrow using a 15 -year note that requires 8% interest. (FV of $1, PV of $1, FVA of $1, and PVA of \$1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.) Required: What is the maximum amount Woody should offer Andy for the toy store? (Assume all cash flows occur at the end of each year.)
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