family business has the cash flow series has presented below. Year 1 2 Revenues ($) Costs ($) 30,500 24,500 9500 33,500 -6000 -35500 -12500 -11500 -17500 etermine the following: a) What conclusions can you draw from the Descart and Norstrom tests applied to the cash flow of the family business? b) Numerically calculate the external rate of return using the Modified ROR (MIRR) method if i = 18% per year and in = 10% per year. %3D c) The external rate of return using the Return on Invested Capital (ROIC) method if i = 18%.

family business has the cash flow series has presented below. Year 1 2 Revenues ($) Costs ($) 30,500 24,500 9500 33,500 -6000 -35500 -12500 -11500 -17500 etermine the following: a) What conclusions can you draw from the Descart and Norstrom tests applied to the cash flow of the family business? b) Numerically calculate the external rate of return using the Modified ROR (MIRR) method if i = 18% per year and in = 10% per year. %3D c) The external rate of return using the Return on Invested Capital (ROIC) method if i = 18%.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 27BE

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