6.59 A new advertising campaign by a company that manufactures products that rely on biometrics, sur- veillance, and satellite technologies resulted in the cash flows shown (in $1000 units). Develop one spreadsheet that displays the following: external rate of return using both the ROIC method with i, = 30% per year, and the modified ROR approach with i, = 30% and i, = 10% per year; and the unique or multiple internal rate of return value(s) indicated by the two multiple-root sign tests. Year Cash Flow, $1,000 2000 1200 2 -4000 -3000 4 2000

6.59 A new advertising campaign by a company that manufactures products that rely on biometrics, sur- veillance, and satellite technologies resulted in the cash flows shown (in $1000 units). Develop one spreadsheet that displays the following: external rate of return using both the ROIC method with i, = 30% per year, and the modified ROR approach with i, = 30% and i, = 10% per year; and the unique or multiple internal rate of return value(s) indicated by the two multiple-root sign tests. Year Cash Flow, $1,000 2000 1200 2 -4000 -3000 4 2000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 16E: Covington Pharmacies has decided to automate its insurance claims process. Two networked computer...

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