1) Kay Sadilla is thinking about investing in the franchise which will need the initial outlay of= $75,000. She conducted market research and determined that after-tax cash flows on investment must be about= $15,000 per year for the next seven years. Franchiser stated that Kay would create a 20% return.
2) Suppose you are to receive a thirty-year annuity with annual payments of= $200. First payment will be received at the end of Year 1, and last payment will be received at the end of Year 30. You will invest each payment in the account that pays= 5.99%. What will be the value in your account at the end of Year 35.