oly Cow Steak House (HCSH) is a steak house based in Dallas, Texas area. The...
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oly Cow Steak House (HCSH) is a steak house based in Dallas, Texas area. The company also has other business lines such as cloth division jewelry division, and meat exporting division. Currently, the HCSH is considering to invest into a new business line. Harold Kumar, the CEO of the HSCH, analyses possible business lines which the cash flows and the cost of capitals present at the table below. Project WACC Year O 1 2 3 Frozen Yogurt 8.00% Cash flows -$150,000 $50,000 $60,000 $70,000 Fresh Milk Cash 10.00% - $200,000 $80,000 $80,000 $80,000 flows Computer Cash 12.50% $1,250,000 $500,000 $525,000 $550,000 Chip flows 1. Calculate NPV for each project: 2. If these projects are independent, which projects should the company invest? Hint: it can be more than one project. 3. If these projects are mutually exclusive, which project should the company invest
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