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Find the amount of revenue from franchise fees

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Reference no: EM133070687

Question - Wynne Inc. charges an initial franchise fee of P2,300,000, with P500,000 paid when the agreement is signed and the balance in five annual payments. The present value of the future payments, discounted at 10%, is P1,364,680. The franchisee has the option to purchase P300,000 of equipment for P240,000. Wynne has substantially provided all initial services required and collectibility of the payments is reasonably assured. Find the amount of revenue from franchise fees?

Reference no: EM133070687

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