Reduce its dollar investment in working capital

Assignment Help Financial Management
Reference no: EM13970763

If the firm could reduce the average age of its inventory from 73 days, to 63 day, by how much would it reduce its dollar investment in working capital?

Reference no: EM13970763

Questions Cloud

Expected net present value : The Z-90 project being considered by Steppingstone Inc. (SI) has an up-front cost of $250,000. The project's subsequent cash flows are critically dependent on whether another of its products, Z-45, becomes an industry standard. what is the Z-90's exp..
Used to discount a projects expected cash flows : Real options change the size, but not the risk, of projects' expected NPVs. Real options change the risk, but not the size, of projects' expected NPVs. Real options can reduce the cost of capital that should be used to discount a project's expected c..
Considering a project that has an up-front cost : The executives of Garner-Wagner Inc. are considering a project that has an up-front cost of $3 million and is expected to produce a cash flow of $500,000 at the end of each of the next 5 years. The project's cost of capital is 10%. Based on the above..
How much would the projects NPV change : Florida Car Wash is considering a new project whose data are shown below. The equipment to be used has a 3-year tax life, would be depreciated on a straight-line basis over the project's 3-year life, and would have a zero salvage value after Year 3. ..
Reduce its dollar investment in working capital : If the firm could reduce the average age of its inventory from 73 days, to 63 day, by how much would it reduce its dollar investment in working capital?
Off-label marketing in the pharmaceutical industry : I need a 5 page research paper on the subject of "Off-Label Marketing in the Pharmaceutical Industry". I need it with a minimum of 10 references in APA format.
Traditional companies in developing online sales capability : Describe some of the reasons that early dot-com companies had an initial advantage over traditional companies in developing an online sales capability?
Residents are covered by non-private pay payors : The owner of Shady Rest Nursing Home insists that the facility earn $80,000 in annual profits. How much must the administrator raise the per day charge for the privately insured residents if 25 percent of the residents are covered by non-private pay ..
Convert pounds to dollar sat an exchange rate : Grant Inc., is a well known U.S firm that needs to borrow 10 million British pounds to support a new business in the United Kingdom. However, it cannot obtain financing from te British banks beacuse it is not yet established within the United Kingdom..

Reviews

Write a Review

Financial Management Questions & Answers

  Share dividend-what is the current share price

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $14 per share dividend 10 years from today ..

  Determining production capacity

Determining Production Capacity Needed at Toyota Motor Manufacturing of Canada (TMMC) A. To maximize profit earned during this period, which production capacity should TMMC in 2000 decide to build - 10,000, 15,000, 20,000, 25,000, or 30,000 cars?

  What is the book value of the equipment

A company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $303,000. What is the book value of the equipment?

  Arithmetic return and geometric return

An asset has had an arithmetic return of 10.8 percent and a geometric return of 8.8 percent over the last 86 years. What return would you estimate for this asset over the next 7 years? 21 years? 28 years?

  What would be your capital budget

The Acme Chip Manufacturing Company (potato not computer) has a target capital structure of 40% debt and 60% common equity. They also have a 40% tax rate. They have three projects under consideration code named: What would be your capital budget? The..

  Pension funds have fewer liquidity problem than depositories

Pension funds have fewer liquidity problems than depositories because. An active management strategy in which money managers try to make timely movements among stocks, bonds, and cash based on complex quantitative models is called. Mortgage-backed se..

  Find the yield to maturity of a bond

Find the yield to maturity of a bond which matures in 15 years, is currently selling at $900 and has an annual coupon payment of 4% paid, semi-annually.

  Different types of bonds such as treasury-corporate

There are alot of different types of bonds such as treasury, corporate, municipal, and foreign. Do all bonds have a return date?   Legally, The original maturates has a range from 10 to 40 years. What happens after 40 years if the business goes bankr..

  What is external rate of return

A proprietor is considering a new investment of $1,000, with expected returns of 150 per year for 1st 3 yr, 1150 in 4th, MARR = 8%, What is external rate of return?

  Capital asset pricing model asserts that the expected return

The Capital Asset Pricing Model asserts that the expected return

  Firm is evaluating two projects

A firm is evaluating two projects X and Z. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the..

  Dividend payment-what is the required return

The next dividend payment by Halestorm, Inc., will be $1.84 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $36 per share, what is the required return?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd