cash flows

thanks for helping Issy to open her first store and make the necessary adjustments. Issy is excited about the opportunity this store has presented to her. She now wants to open five additional stores for which she has identified sights in the greater metro area. Her quandary is whether to open each new store with the available cash flows of the previous stores (thus retaining full ownership) or to accept an offer from a potential partner to fully fund the additional stores and open them right now (beginning of second year). However, the potential partner wants 40% ownership of all stores from the beginning (even store 1, retroactively). She has prepared estimated free cash flows for each option for each year of the ten year period, including the end of the first year. If you are comparing options bring your calculations back to the beginning of year one, since if she takes a partner all ownership will be retroactive. Do two things: First, tell her under which option she would be financially better off and why (must submit spreadsheet and explanation). Second, what are the strategic reasons she might choose one or the other option? This section needs to be robust (lots of reasons). Please do NOT give me additional financial reasons here.