What is the present value of this stream of cash flows

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Reference no: EM131312365

Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 15 end-of-year payments starting one year from now. The first two payments would be $27,000 and $ 22,000 in one and two years respectively, and then 7,000 per year after that for 13 years. If Wally requires a return of 8.6 % , what is the present value of this stream of cash flows? What is the present value of this stream of cash flows?

Reference no: EM131312365

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