Question: please help Capital budgeting analysis: mini case Your uncle just gave you $1,000,000 to do with as you please. You have decided that you would

please help
Capital budgeting analysis: mini case Your uncle just gave you $1,000,000 to do with as you please. You have decided that you would like to purchase at least one established franchise in the fast foods area, maybe two if profitable). The problem is that you have never been one to stay with any project for too long so you figure that your time frame is five years. After five years you will sell off your investment and go on to something else You have narrowed your selection down to two choices: (1) Franchise L: Lisa's Soups, Salads & Stuffs and (2) Franchise S: Sam's Fabulous Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in year 5 and the forecast of how each franchise will do over the five-year period. Franchise L serves breakfast and lunch, while franchise S serves only dinner, so it is possible for you to invest in both franchises. Here are the projects estimated free cash flows (in thousands of dollars): Expected Free Cash Flow Year Franchise L Franchise 0 15120) ($120) 2 10 100 2 40 BO 3 60 60 80 40 5 20 Amortization salvage values. net working capitalguirements and tax eftects are all included in these free cashirious You also have concluded that both franchises have is characteristics that require return of 10% capital cost You must ha determine whether one or both of the projects should be accepted What is cach tranchise NPV conding the decisions project should be accepted at they are mutual sebesma b. With cach tranchises IRRI STIRRIDE bich project should the accepted ure in What is the MIRR for Franchise Ametheus qual OS marks What is the discounted payback nedito lians
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