Define the term "modified IRR (MIRR)." Find the MIRRs for Franchises L & S.

Here are the net cash flows (in thousands of dollars); Year Expected Net Cash Flows Franchise L Franchise s --$100 --$100 10 50 80 20 0 1 2 3 70 60 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%. You must now determine whether one or both of the franchises should be accepted. a. What is capital budgeting? When a business decides to evaluate potentially completing a major project or investment, the company completes a capital budget. Examples of projects that would require capital budgeting are APR 24 BO F2 ODD F4 F5 @ $ % & 2 3 4 5 6 7 Q W E R Y