Mean Dones and Jeremie Jane Roldan Inc. charges an initial franchise fee of P920,00, with P200,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is P545,872. The franchise has the option to purchase P120.000 of equipment for P96,000, franchise operations already stared. The amount of revenue from franchise fees is: -P200.000 -P721.872

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