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2. McDonalds is considering investing in a new chain about food vegan restaurants. The estimated cash flows (in millions) Of the restaurants are as follows:
2. McDonalds is considering investing in a new chain about food vegan restaurants.
The estimated cash flows (in millions) Of the restaurants are as follows:
Year 0 1 2 3 4
Free Cash Flow -$1,100 $440 $385 $330 $275
The required rate on this project is estimated to be 10%
A) what is the net present value of this project? ____________
B) what is the internal rate of return of this project?______________
C) what is the modified internal rate of return of this project? _______________
D) should McDonalds invest in the vegan restaurant chain? Wire why not? ________________
E) where are the net present value of the project using the following rates (first step in NPV Profile)
Required rate 0.00% 4.00% 8.00% 12% 16%
Net present value _______ _______ _______ ________ _______
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