Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. john wiggins is considering the purchase of a smal

John Wiggins is considering the purchase of a small restaurant. The purchase price listed by...

60.1K

Verified Solution

Question

Accounting

image
John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $930,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1. PV of $1. FVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Years 1-6 7 8 9 10 Amount $93,000 83,000 73,080 63,000 53,000 I purchased the restaurant would be held for 10 years and then sold for an estimated $830,000 Required: Determine the present value, assuming that John desires a 9% rate of return on this investment (Assume that all cash flows occur at the end of the year) (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) 1- Present Value 94 Future Amount 93.000 83.000 73,000 63.000 9 6 7 8 S 94

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is product feedback inhibition? Explain how product feedback inhibition happens in Lac operon.

Biology
Q

The endosymbiotic theory explains the evolution of Viruses Anaerobic bacteria All bacteria All Fukaryotes

Biology
Q

8. Thanks to immunological memory, the antibody response that occurs after the second exposure to...

Biology
Q

Simplify the expression and eliminate any negative exponent s Assume that all letters denote positive...

Basic Math
Q

A driver gear is turning at 450 rpm and has 130 teeth. If the driven...

Basic Math
Q

Find f given that f x 12x 6x 4 f 0 4 and 1 1...

Calculus
Q

Problem 1 Find the value of y when x 0 if xy ey 7 e

Calculus
Q

In cell f4 create a formula using Hlookup function to determine the cost per participant...

Accounting
Q

SP 7 Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting...

Accounting
Q

Apply the framework for vulnerability assessment and vulnerability management by assuming an example. ...

Accounting
Q

Compare and contrast the Direct Method and the Step-Down Method of fixed cost allocation. Describe...

Accounting
Q

Discussion Question 12-13 (LO. 3) Paola exercised an incentive stock option on March 1, 2016....

Accounting