Question: a Tides Restaurant Chain is a restaurant chain based in Lincoln, NE. The restaurant is well-known as the best ribeye steak in town. The restaurant

a Tides Restaurant Chain is a restaurant chain based in Lincoln, NE. The restaurant is well-known as the best ribeye steak in town. The restaurant has decided to open a new restaurant chain in Omaha, NE. The company is expected the cash flows as following: Year o 1 2 3 Cash flows -$500,000 $315,000 $125,000 $230,000 1. If WACC is 10.00%, should Tides Restaurant Chain open a new restaurant in Omaha? 2. Calculate IRR of the project. 3. Due to a new deadly virus spreading out, it causes a severe effect to the quality of the ribeye steak. CFO of the company forecasts that the project will have a higher risk which the WACC will be 18.00%. What is the new NPV of the project based on the new WACC? Should the company open a new restaurant chain in Omaha

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