Jenni's Diner Has Expected Net Annual Cash Flows of $16,200,$18,600,$19,100,and

question 98

Multiple Choice

Jenni's Diner has expected net annual cash flows of $16,200,$18,600,$19,100,and $19,500 for the next four years,respectively.At the end of the fourth year,the diner is expected to be worth $57,900 cash.What is the present value of the diner at a discount rate of 11.6 percent?

• A)$93,090.25
• B)$87,492.16
• C)$101,016.38
• D)$104,998.02
• E)$98,411.20

---

Definitions:

Owner's Equity

The residual interest in the assets of a company after deducting liabilities, representing the ownership stake of the company's shareholders or owner.

Total Assets

The sum of all resources owned by a company, valued in monetary terms, and reported on the balance sheet.

Building Appraised

The process of determining the estimated market value of a building by a professional appraiser.

Account Payable

Obligations or debts a company owes to suppliers or creditors for goods or services received that have not yet been paid for.