Multiple Choice
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
Correct Answer:
Verified
Correct Answer:
Verified
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