What is the present value of stream of cash flows

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Problem 1: Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would see him receive 13 end-of-year payments starting one year from now. The first two payments would be $30,000 and $25,000 in one and two years respectively, and then $21,000 per year after that for 11 years. If Wally requires a return of 6%, what is the present value of this stream of cash flows?

Reference no: EM132997847

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