Project Analysis

You have just been hired as a financial analyst for Dunkin’ Brands Group, Inc. (DNKN). Your boss has asked you to work on the project for Dunkin’ to spend $100 million to upgrade interiors and exteriors of stores and $20 million to improve its IT infrastructure. Upper management believes that these investments would lead to additional customers for Dunkin’. Discuss the concepts that were learned in this course, particularly in the second half of the course, to make a determination as to whether or not Dunkin’ should undertake the projects. Make sure to discuss all aspects of the analysis of these projects. No calculations are necessary.