What is the present value of stream of cash flows

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Reference no: EM131942789

Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 13 end-of-year payments starting one year from now. The first two payments would be $ 27,000 and $23,000 in one and two years respectively, and then $ 19,000 per year after that for 11 years. If Wally requires a return of 10.7%, what is the present value of this stream of cash flows?

Reference no: EM131942789

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