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During a Fogelman MBA alumni dinner in 1 0 years your classmate approaches you about investing in the local restaurant chain Dewey s and gives

During a Fogelman MBA alumni dinner in 10 years your classmate approaches you about
investing in the local restaurant chain Deweys and gives you the pertinent cash flow
estimations. He suggests you buy a building and franchise, for a total initial cash outflow of $3.5
million. He projects this will yield positive cash flows of $200,000 per year for 5 years, plus a
building worth $3.8 million in year 5

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