The finance director was investigating a potential acquisition. As part of the exercise she gave your colleague the current value of total assets, the post-tax operating income, the economic life of the assets and the scrap value of the assets with a request to calculate the cash flow return on investment (CFROI) for the company. Your colleague has asked you to explain to him

(a) How this is done or where he could find further information about this on the Web, 

(b) How the CFROI will be used.