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A Firm Purchased a 16-Year Franchise for a Computer Outlet

Question 12

Multiple Choice

A firm purchased a 16-year franchise for a computer outlet store that is expected to generate income at the rate of A firm purchased a 16-year franchise for a computer outlet store that is expected to generate income at the rate of dollars per year. If the prevailing interest rate is 10% per year compounded continuously, find the present value of the franchise. A) $1,114,979 B) $2,250,532 C) $4,660,006 D) $3,192,414 E) $1,756,632 dollars per year. If the prevailing interest rate is 10% per year compounded continuously, find the present value of the franchise.


A) $1,114,979
B) $2,250,532
C) $4,660,006
D) $3,192,414
E) $1,756,632

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