1-24.03 Cedar's is an upscale restaurant that is rapidly adding locations in new markets. The primary owner is Chef Bartell, and he obtains capital for expansion by enticing people in each new target market area to invest in the restaurant. The investment program entails offering investors a "unit" of ownership for $250,000. The Investment is very risky, and contemplates no return until the end of the third year. At the end of the third year, the investment is to pay each "unit" $40,000. A similar payment is to occur at the end of year four, five, and six. At the end of the seventh year, Chef Bartell has then promised to buy back the "unit" for $400,000. Return at end of Year 1 Return at end of Year 2 Return at end of Year 3 Return at end of Year 4 Return at end of Year 5 Return at end of Year 6 Return at end of Year 7 Total present value Amount Present Value Factor @ 12% Present Value D Question 1 What is the Present Value Factor in Year 1? .63552 0.89286 O.71178 None of the choices listed Question 2 What is the PRESENT VALUE at the end of Year 3? 25421 180940 28471 Question 3 2 pts What is the total present value? (Not the net present value. You do no need to subtract out the initial investment.) 277,794 560,000 None of the choices listed