4. In 2024, Fasko Medical Center (FMC) reported a cash flow of $13,200 and a cost of capital of 5%. Its investments are valued at $185,500 on a replacement cost basis, $198,750 on a historical cost valuation basis, and $192,000 on a current market value basis. 4a. Calculate the minimum annual cash flow required to sustain operations and proceed with planned significant new investments. 4b. Evaluate the investment performance (ROI). (Round to two decimal places)

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN:9781337902571
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter16: Financial Planning And Forecasting
Section: Chapter Questions
Problem 2P: AFN EQUATION Refer to Problem 16-1. What additional funds would be needed if the companys year-end...
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4. In 2024, Fasko Medical Center (FMC) reported a cash flow of $13,200 and a cost of capital
of 5%. Its investments are valued at $185,500 on a replacement cost basis, $198,750 on a
historical cost valuation basis, and $192,000 on a current market value basis.
4a. Calculate the minimum annual cash flow required to sustain operations and proceed with
planned significant new investments.
4b. Evaluate the investment performance (ROI). (Round to two decimal places)
Transcribed Image Text:4. In 2024, Fasko Medical Center (FMC) reported a cash flow of $13,200 and a cost of capital of 5%. Its investments are valued at $185,500 on a replacement cost basis, $198,750 on a historical cost valuation basis, and $192,000 on a current market value basis. 4a. Calculate the minimum annual cash flow required to sustain operations and proceed with planned significant new investments. 4b. Evaluate the investment performance (ROI). (Round to two decimal places)
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