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The Sydney franchisee of the McDonald's Fast Food restaurants is replacing the kitchen appliances across all locations due to too many complaints about soggy burger
The Sydney franchisee of the McDonald's Fast Food restaurants is replacing the kitchen appliances across all locations due to too many complaints about soggy burger paddies. Requiring an upfront investment of $367, 791 in year 0, this measure will not have any positive influences yet in year 1 as customers will have to gain some trust back. But starting in year 2, there will be an increase operating cash flow of $45,000 per restaurant, which then gradually declines by 6.0% each subsequent year forever. Assuming a cost of capital of 7.5% what is the NPV of the upgrade per location? $ (Round to the nearest dollar.) Thus, the IRR of the project must be less than 7.5%. (Select from the drop-down menu.) (No answer given) Keep the cost of capital as before. What rate of decline would make this project exactly break even
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