=+Determine IHOPs: a. Net investment (development cost less initial franchise fee) to develop a restaurant. b. Net
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=+Determine IHOP’s:
a. Net investment (development cost less initial franchise fee) to develop a restaurant.
b. Net present value for a new restaurant, assuming a 10-year life, no change in annual rev¬
enues, and a 12% desired rate ofreturn. Use the present value tables appearing in Exhibits 1 and 2 in this chapter.
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