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with process please The Sydney franchisee of the Oporto Chicken Fast Food restaurants is replacing the kitchen appliances across all locations due to too many
with process please
The Sydney franchisee of the Oporto Chicken Fast Food restaurants is replacing the kitchen appliances across all locations due to too many complaints about burned chicken. At an upfront cost of $657,839 each, this measure will increase operating cash flow by $80,000 per location in year 1 and then gradually decline from there by 5.5% each subsequent year forever. Assuming a cost of capital of 9.0% what is the NPV of the upgrade per location? $ (Round to the nearest dollar.) Thus, the IRR of the project must be less than 9.0%. (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? %Step by Step Solution
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