James Polk Hospital has currently unused space in its lobby. In three years, the space will berequired for a planned expansion, but the hospital is considering uses of the space until then.The hospital has decided that it wants to purchase at least one and maybe two fast foodfranchises, to take advantage of the high volume of patients and visitors that walks through thelobby all day long. The hospital plans to purchase the franchise(s), operate it for three years, andthen close down. The hospital has narrowed its selection down to two choices:Franchise L: Lisa's Soups, Salads, and StuffFranchise S: Sam's Wonderful Fried ChickenThe net cash flows shown below include the costs of closing down the franchises in year 3 andthe forecast of how each franchise will do over the three-year period. Franchise L servesbreakfast and lunch, while Franchise S serves only dinner, so it is possible for the hospital toinvest in both franchises. The hospital believes these franchises are perfect complements to oneanother: the hospital could attract both the breakfast/lunch and dinner crowds and the healthconscious and not so health conscious crowds without the franchises directly competing againstone another. The corporate cost of capital is 10 percent.

Net cash flows

year Franchise S Franchise L

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0 -$100 -$100

1 $70 $10

2 $50 $60

3 $20 $80

a. Calculate each franchise's payback period, net present value (NPV), internal rate ofreturn (IRR), and modified internal rate of return (MIRR).b. Which project or projects should be accepted if they are independent? Which projectshould be accepted if they are mutually exclusive?

b. Which project or projects should be accepted if they are independent? Which projectshould be accepted if they are mutually exclusive?

Please show work in details