Explain please how to find #2. Thank you
1.The initial franchise fee is $1.2 million. $200,000 is payable immediately and the remainder is due in 10, $100,000 installments plus 10% interest on the unpaid balance each January 30, beginning January 30, 2014. The 10% interest rate is an appropriate market rate.
2. All of the initial down payment of $200,000 is to be refunded by Olive Branch and the remaining obligation canceled if, for any reason, the franchisee fails to open the franchise.?
Acc receivable $$??
Service revenue $$??
