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Financial Management - Super Project Questions

This document contains 8 questions about evaluating a Super Project investment using different alternatives for calculating return on funds employed (ROFE). It asks to define ROFE, describe the cash flows included in each of 3 alternatives, and determine if the Super Project is a good investment under each alternative by providing the calculated ROFE and explanation. It concludes by asking what issue or problem exists with the Super Project.

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Dr Rushen Singh
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423 views1 page

Financial Management - Super Project Questions

This document contains 8 questions about evaluating a Super Project investment using different alternatives for calculating return on funds employed (ROFE). It asks to define ROFE, describe the cash flows included in each of 3 alternatives, and determine if the Super Project is a good investment under each alternative by providing the calculated ROFE and explanation. It concludes by asking what issue or problem exists with the Super Project.

Uploaded by

Dr Rushen Singh
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

QUESTIONS FOR THE SUPER PROJECT CASE 1. What is ROFE? In words describe the method of calculating the return.

Do not just give the formula.

2.

In words, describe what cash flows are included in Alternative I?

3.

In words, describe what cash flows (beyond Alt I) are included in Alternative II?

4.

In words, describe what cash flows (beyond Alt II) are included in Alternative III?

5.

Using the Alternative I and ROFE is Super Project a good investment? Give numbers and say why?

6.

Using the Alternative II and ROFE is Super Project a good investment? Give numbers and say why?

7.

Using the Alternative III and ROFE is Super Project a good investment? Give numbers and say why?

8.

What is the issue/problem of the Super Project?

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