Considering investing in franchise-requires initial outlay

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Reference no: EM13942199

Kay SAdilla is considering investing in a franchise that requires an initial outlay of $75,000. She conducted market reserch and found that after-tax cash flows on the investment should be about $15,000 per year for the next 7 years. The franchiser stated that Kay would generate a 20 percent return. Her cost of capital is 10 percent. Find the Following: PVB, PVC, NPV, and IRR.

Reference no: EM13942199

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