Guthrie's Golden Fried Chicken Fingers Franchise Instructions: You will draft a written report of approximately 800 to 1000 words plus tables. The report should explain your analysis, address the prompts, make a recommendation, and justify the recommendation You may work individually or in groups of up to 4 people. If you decide to work in a group, however, any disputes between group members must be resolved within the group. In general, all group members will earn the same grade on their assignment (But please keep in mind, every group member should submit his/her own copy of project. Failing to do so would result in a Zero for that group member). However, group members will be asked to evaluate each other and I may use these evaluations to adjust the grades assigned to individual group members. THE CASE: Guthrie's restaurant was started in 1965 in Haleyville, Alabama, by Hal Guthrie. The restaurant began serving Chicken Fingers in 1978. In 1982, Hal and his oldest son Chris opened a Guthrie's in Auburn, Alabama. Originally, Guthrie's had a large menu including hamburgers, steak sandwiches, and chicken fingers. Soon after opening, however, the menu was limited to the overwhelmingly popular Chicken Finger box. The Box includes chicken fingers, French fires, cole slaw, Texas toast, and Guthrie's Signature Sauce. During the 1980s, The Guthrie family opened Guthrie's locations in several college towns throughout the Southeast, including Athens, Georgia, Tallahassee, Florida, and Tuscaloosa, Alabama. Hey also opened them in several towns. By the end of the 1980s, Guthrie's was a household name throughout much of the Southeast. Now, more than 50 years since first opening, Guthrie's continues as a specialty restaurant with a limited menu focusing on Fried Chicken Fingers. It is still a family business, but its franchise business is steadily growing. As a result, people all over the U.S. can now enjoy Guthrie's Golden Fried Chicken 1. Prepare pro forma income statements and operating cash flow projections. Explain your pro forma statements in your report. 2. Estimate the total cash flows for this opportunity. Explain your estimates in your report. 3. Estimate the opportunity's NPV. Explain how you arrived at your NPV estimates in the report. 4. Consider what happens to cash flows and NPV if Sales are 20% more than expected. What if sales are 20% less than expected? Discuss this analysis in your report. 5. What is your recommendation? Should you and your partners pursue this opportunity? Explain your recommendation and provide your rationale