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QUESTIONS FOR THE SUPER PROJECT CASE 1. What is ROFE? In words describe the method of calculating the return.

Do not just give the formula.

2.

In words, describe what cash flows are included in Alternative I?

3.

In words, describe what cash flows (beyond Alt I) are included in Alternative II?

4.

In words, describe what cash flows (beyond Alt II) are included in Alternative III?

5.

Using the Alternative I and ROFE is Super Project a good investment? Give numbers and say why?

6.

Using the Alternative II and ROFE is Super Project a good investment? Give numbers and say why?

7.

Using the Alternative III and ROFE is Super Project a good investment? Give numbers and say why?

8.

What is the issue/problem of the Super Project?

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