Complements to one another you could attratct both

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COMPLEMENTS TO ONE ANOTHER: YOU COULD ATTRATCT BOTH THE LUNCH AND DINNER CROWDS AND THE HEALTH CONSCIOUS AND NOT SO HEALTH CONSCIOUS CROWDS WITH THE FRANCHISES DIRECTLY COMPETING AGAINST ONE ANOTHER. HERE ARE THE PROJECTS' NET CASH FLOWS (IN THOUSANDS OF DOLLARS): EXPECTED NET CASH FLOW YEAR FRANCHISE L FRANCHISE S 0 ($100) ($100) 1 10 70 2 60 50 3 80 20 DEPRECIATION, SALVAGE VALUES, NET WORKING CAPITAL REQUIREMENTS, AND TAX EFFECTS ARE ALL INCLUDED IN THESE CASH FLOWS. YOU ALSO HAVE MADE SUBJECTIVE RISK ASSESSMENTS OF EACH FRANCHISE, AND CONCLUDED THAT BOTH FRANCHISES HAVE RISK CHARACTERISTICS THAT REQUIRE A RETURN OF 10 PERCENT. YOU MUST NOW DETERMINE WHETHER ONE OR BOTH OF THE PROJECTS SHOULD BE ACCEPTED. Mini Case: 11 - 27
A. WHAT IS CAPITAL BUDGETING?
B. WHAT IS THE DIFFERENCE BETWEEN INDEPENDENT AND MUTUALLY EXCLUSIVE PROJECTS? 4 5 + + + + + + + - + - - -
Mini Case: 11 - 28

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