How much free trade credit does firm receive during year

Assignment Help Financial Management

Reference no: EM131918663

1. Buskirk Construction buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after the invoice date. Net purchases amount to $500,000 per year. On average, how much "free" trade credit does the firm receive during the year? (Assume a 365-day year, and note that purchases are net of discounts.)

a. $19,315

b. $16,644

c. $18,699

d. $20,548

e. $24,863

2. Which of the following statements is CORRECT?

a. To find the MIRR, we discount the TV at the IRR.

b. The IRR method appeals to some managers because it gives an estimate of the rate of return on projects rather than a dollar amount, which the NPV method provides.

c. The discounted payback method eliminates all of the problems associated with the payback method.

d. When evaluating independent projects, the NPV and IRR methods often yield conflicting results regarding a project's acceptability.

e. A project's NPV profile must intersect the X-axis at the project's WACC.

Reference no: EM131918663

Questions Cloud

Significant figures can its volume be determined : A certain cylinder has a height of 10.0 cm and a radius of 5.0 cm. To how many significant figures can its volume be determined?

Possible downward transitions are equally probable : If there are 500 atoms in the sample and assuming that from any state all possible downward transitions are equally probable

Identify the country associated with your last name : Identify the country associated with your last name. You were perform all calculations only on that country and the US.

Is a deliberate indifference standard appropriate : What should be the test for determining when prison conditions constitute cruel and unusual punishments?

How much free trade credit does firm receive during year : Buskirk Construction buys on terms of 2/15, net 60 days. how much "free" trade credit does the firm receive during the year?

Brightness in different depths of field : Suppose you want to create two photographs with the same brightness in different depths of field.

Comparisons between the us court system and the saudi arabia : Write a 7 page paper that compares and contrasts the different courts you observed and summarize your overall learning experience.

Discuss the formation of urine explaining the microscopic : Discuss the formation of urine explaining the microscopic anatomy of the nephron and its basic functions of filtration, reabsorption, and secretion.

Company ethical guidelines : As an HR professional how do you address an employee who does not follow the company's ethical guidelines?

User Account

All Pages