And the health conscious and not so health conscious

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and the health conscious and not so health conscious crowds with the franchises directlycompeting against one another.Here are the projects' net cash flows (in thousands of dollars):Expected Net Cash FlowYearFranchise LFranchise S0($100)($100)110702605038020Depreciation, salvage values, net working capital requirements, and tax effects are allincluded in these cash flows.You also have made subjective risk assessments of each franchise, and concluded thatboth franchises have risk characteristics that require a return of 10 percent.You mustnow determine whether one or both of the projects should be accepted.
a.What is capital budgeting?
b.What is the difference between independent and mutually exclusive projects?45+++++++-+---
Mini Case:11 - 29
Mini Case:11 - 30c.

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Term
Fall
Professor
N/A
Tags
Net Present Value, Internal rate of return

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