Jewels Hair Design Studios would like to purchase another hair salon that is being sold in a neighboring town for $500,0

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Jewels Hair Design Studios Would Like To Purchase Another Hair Salon That Is Being Sold In A Neighboring Town For 500 0 1 (23.17 KiB) Viewed 15 times

Jewels Hair Design Studios would like to purchase another hair salon that is being sold in a neighboring town for $500,000 Aasume cash flows occur at the end of the year. Based on past volume of sales, Jewels stimates the met cash flows that would be generated by the salon the in to view the cash flow) After six years, Jewels can sell the salon for $300,000 (Click the icon to view the Future Value of table (Click the in to view the Future Value of an Ordinary Annuity table (Cick the icon to view the Future Value of an Annuity Dutable) Requirement If the interest rate on this investment is 0%, compounded annually should Jewels purchase the salon? Jewels (Click the icon to view the Present Value of $1 tabla) (Click the icon to view the Present Value of an Ordinary Annuitylable) (Cick the icon to view the Prosent Value of an Annuly due tab) First calculate the present value of the cash infows from the new salon. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadshest for your calculations. Use the same method for at calculation. If using present and future value tables or the formula method, use factor amounts rounded to ve decimal places, XXXXXX Round intermediary cuency computations and your final answer to the nearest cent. XXX) The present value of the cash inflows from the new salon amount to Data table purchase the salon Years Cash Flows $ 60,000 70,000 80,000 60,000