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Which is true when gorgeous george is evaluating a five-year

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Question 1: Gorgeous George is evaluating a five-year investment in an oil-change franchise, which costs $120,000 paid up front. Projected net operating cash flows are $60,000 per year. If Gorgeous George buys shares instead of the franchise, he expects an annual return of 12%. Which is true?

a. the future value of the franchise is $216,287

b. the net present value of the franchise is $216,287

c. the future value of the franchise is $138,900

d. the net present value of the franchise is $96,287

e. none of the above

Reference no: EM132579594

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