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Estimate the cash flows from proposed franchise site

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Reference no: EM132446674

A company operates several successful restaurants. It is considering franchising its restaurant concept in a scheme whereby the company and the franchisee would invest equal amounts in setting up each new restaurant. The company would then receive a percentage of the turnover from each restaurant for the life of the agreement. Outline how simulation might be used to estimate the cash flows from each proposed franchise site.

Reference no: EM132446674

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