What does the profitability index (PI) measure?
What are the PIs for Franchises
S and L?
What is the payback period?
Find the paybacks for franchises L and S.
What is the rationale for the payback method?
According to the payback
criterion, which franchise or franchises should be accepted if the firm's
maximum acceptable payback is 2 years, and if franchises L and S are
If they are mutually exclusive?