Question 1:

Make sure to show the formula and steps

The required rate of return: 8%

Years: 5

Year	Franchise L	Franchise S
0	($2,000,000)	($1,650,000)
1	$490,000	$412,500
2	$562,000	$454,500
3	$529,600	$435,600
4	$503,680	$420,480
5	$808,470	$486,608

(a). What is each franchise's NPV?

(b). Calculate the IRR for each project.

(c). Find the MIRRs for Franchise L and S

(d). Calculate the payback period for each franchise.