ps://outlook.offi Review questions on purchasing an existing Business 1. Using the ROI valuation technique, calculate the purchase price for a business with a FD 250000/- annual profit and a level of risk that commands a 15 per cent return on investment. What would be the purchase price for the same business if the anticipated ROI was 10 per cent? 2. Repeat the two calculations above using earning-based valuation techniques, but with a firm whose net profit is only FD 30000/- 3. A business has tangible assets of FD 875000 and liabilities of 50000/-, and produces a net profit of FD 56000 per annum based on a turnover of FD 430000/. It is a professional practice (multiple = 2) and has and ROI of 7 per cent. There are no intangible assets. a. Calculate the purchase price this using i. Book value (assets) ii. Market value (revenue multiplier) iii. ROI b. Which of these three methods is the most appropriate one to use? Justify. 4. What personality types are best suited to the Start-up, Purchasing, and Franchising options RESPECTIVELY? ??? ing your approval staffs starting at 9 vove table. ceting refre de meals Sir, kind