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Illustrate the projected cash flows on a timeline

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Question - A restaurant is for sale for $200,000. It is estimated that the restaurant will earn $20,000 a year for the next 15 years. At the end of 15 years, it is estimated that the restaurant will sell for $350,000. (By hand/calculator)

Illustrate the projected cash flows on a timeline.

Determine whether this is a good investment if your required rate of return is 15%.

Reference no: EM133111659

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