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Years Amount 1-6 $85,000 7 95,000 8 105,000 9 115,000 10 125,000 Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The
Years | Amount |
---|---|
1-6 | $85,000 |
7 | 95,000 |
8 | 105,000 |
9 | 115,000 |
10 | 125,000 |
Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,050,000. With the help of his account, Bruce projects the net cash flows(cash inflows less cash outflows) from the restaurant to be the above amounts over the next 10 years.
Calculate the total present value of the net cash flows if Bruce wants to make at least 12% annually on his investment(assume all cash flows occur at the end of each year)
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