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Years 1 to 6 7 8 9 10 Amount $92,000 (each year) 102,000 112,000 122,000 132,000 ce expects to sell the restaurant after 10 years for an estimated $1,220,000. (EV of $1. PV of $1. EVA of $1, and PVA of $1) (Us- les, Excel, or a financial calculator. Round your answer to 2 decimal places.) quired: Calculate the total present value of the net cash flows if Bruce wants to make at least 10 % annually on his investment. (Assur sh flows occur at the end of each year. Be sure to include the selling price in your calculation.) Assuming the restaurant is listed for sale at $1,050,000, should he purchase the restaurant? Req 1A Complete this question by entering your answers in the tabs below. Req 18 Calculate the total present value of the net cash flows if Bruce wants to at least 100% seriall

Years 1 to 6 7 8 9 10 Amount $92,000 (each year) 102,000 112,000 122,000 132,000 ce expects to sell the restaurant after 10 years for an estimated $1,220,000. (EV of $1. PV of $1. EVA of $1, and PVA of $1) (Us- les, Excel, or a financial calculator. Round your answer to 2 decimal places.) quired: Calculate the total present value of the net cash flows if Bruce wants to make at least 10 % annually on his investment. (Assur sh flows occur at the end of each year. Be sure to include the selling price in your calculation.) Assuming the restaurant is listed for sale at $1,050,000, should he purchase the restaurant? Req 1A Complete this question by entering your answers in the tabs below. Req 18 Calculate the total present value of the net cash flows if Bruce wants to at least 100% seriall

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years: Years 1 to 6 7 8 9 10 Amount $92,000 (each year) 102,000 112,000 122,000 132,000 Bruce expects to sell the restaurant after 10 years for an estimated $1,220,000. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Required: 1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year. Be sure to include the selling price in your calculation.) 1-b. Assuming the restaurant is listed for sale at $1,050,000, should he purchase the restaurant? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year. Be sure to include the selling price in your calculation.) Total present value Req 1A Req 1B >
Transcribed Image Text:Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years: Years 1 to 6 7 8 9 10 Amount $92,000 (each year) 102,000 112,000 122,000 132,000 Bruce expects to sell the restaurant after 10 years for an estimated $1,220,000. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answer to 2 decimal places.) Required: 1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year. Be sure to include the selling price in your calculation.) 1-b. Assuming the restaurant is listed for sale at $1,050,000, should he purchase the restaurant? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year. Be sure to include the selling price in your calculation.) Total present value Req 1A Req 1B >
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