Question: solve below discounted cash flow question using NPV formulae Randy Macho Man Savage has been presented with 2 investment Opportunities and they are as follows:
solve below discounted cash flow question using NPV formulae
Randy Macho Man Savage has been presented with investment Opportunities and they are as follows:
Investment
Pay today for franchise
Pay today for assets
In current period make net income
In next consecutive years make net income each year.
At the end of the project sell assets and franchise for
Investment
Pay for assets and license fee today
In current period net income
In next consecutive make net income each year
Nothing to sell at end of project
Assuming Mr Savage has the cash available to start both projects and further assume that he requires a return on all his investments, which of these projects should he engage with?
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