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
A
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