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how can i solve f4 since i dunno what f3 is ? check the formula on the leftside slide please Return on Invested Capital Approach
how can i solve f4 since i dunno what f3 is ? check the formula on the leftside slide please
Return on Invested Capital Approach (ROIC) Measure of how efectivety project uses funds that remain ntermal to projerct ROIC rate, r, is detemined using net-investment procedure ROIC Example For the NCF shown below, find the EROR by the ROIC me MARR = 9% and 12% thod i Thre step Procedure Three step Procedure NCF +2000 -500 8100 +6800 +1207 (1) Develop series of FW relations for each year t using FF+k+NCF Solution: 26% where: k=tif,, > 0 and k = i" if F-0 -Zee o(1+12/r-5be (2) Set future worth relationfor last year n equal to 0 (ie.. Fsolvefri" 1 2 MARR proed isjustifect otherwise. reyecr 7-16 7-18Step by Step Solution
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