Molly,president of Molly's Muffins,is Considering Franchising

question 90

Multiple Choice

Molly,president of Molly's Muffins,is considering franchising.She has a potential franchise agreement that would see her receive payments of $28,000,$24,000,and $20,000 at the end of years 1,2,and 3 respectively,and then $12,000 per year after that for 17 years.If Molly requires a return of 10%,then what is the present value of this stream of cash flows? (Round answer to the nearest whole dollar)

• A) $132,636
• B) $145,900
• C) $143,354
• D) $156,574
• E) $124,440

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