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the question is in the files. do not copy from google or online. you can use note from 'financial managerial' book. Don't forget to read the mini case. you should answer the question according to the mini case from my word file.
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Explanation & Answer
Attached.
The Basics of Capital Budgeting
Evaluating Cash Flows
MINI-CASE
You have just graduated from the MBA program of a large university, and one of your
favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have
decided you want to “be your own boss.” While you were in the master’s program, your
grandfather died and left you $300,000 to do with as you please. You are not an inventor
and you do not have a trade skill that you can market; however, 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 three years. After three 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, & Stuff and (2) Franchise S: Sam’s Wonderf...