On July 1, 2018, Ed Wynne Signed an Agreement to Operate

question 113

Multiple Choice

On July 1, 2018, Ed Wynne signed an agreement to operate as a franchisee of Kwik Foods, Inc., for an initial franchise fee of £240,000. Of this amount, £80,000 was paid when the agreement was signed and the balance is payable in four equal annual payments of £40,000 beginning July 1, 2019. The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wynne's credit rating indicates that he can borrow money at 14% for a loan of this type. Information on present and future value factors is as follows:

• A) £174,400.
• B) £196,400.
• C) £240,000.
• D) £270,400.

---

Definitions:

Vacuums

Devices that use suction to remove dirt and dust, typically from floors and other surfaces.

Towel

A piece of absorbent fabric or paper used for drying or wiping a surface, body, or hands.

Nobody's

Belonging to no one; not owned or claimed by anyone.

It's

The contraction for "it is" or "it has," used to signify possession or the present tense of "to be."