Question: Question 1 - McDonalds is considering purchasing its (hypothetical) rival, Crusty Burger.McDonalds analysts believe the following stream of earnings (profit) is a reasonable estimate. Determine

Question 1 - McDonalds is considering purchasing its (hypothetical) rival, Crusty Burger.McDonalds analysts believe the following stream of earnings (profit) is a reasonable estimate. Determine the maximum price McDonalds should pay for Crusty Burger based on the value of earnings alone. For your analysis use a discount rate of 6%.

	10-Year Projected Earnings for Crusty Burger
Year 1	$300 Million
Year 2	$305 Million
Year 3	$310 Million
Year 4	$315 Million
Year 5	$320 Million
Year 6	$325 Million
Year 7	$330 Million
Year 8	$335 Million
Year 9	$340 Million
Year 10	$345 Million

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