
Concept explainers
(Real options and capital budgeting) McDoogals Restaurants has come up with a new fast-food, casual restaurant combining some of the features of Chipotle, Panera, and Shake Shack, but it is not quite sure how the public will react to it. McDoogals feels that there is a 50–50 chance that consumers will like it and a 50–50 chance that they won’t. McDoogals is considering building one of these new restaurants; the cash flows if it succeeds and if it fails are given below.
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Chapter 11 Solutions
EBK FOUNDATIONS OF FINANCE
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