Require cash investment in net working capital

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1. Which one of the following is a situation where a new project will require a cash investment in net working capital?

A) Inventory levels will be reduced when the project is introduced

B) All sales related to the project will be cash sales to a subsidiary

C) The project will require additional inventory which will be financed by a supplier

2. Zarruk Construction’s DSO is 50 days (on a 365-day basis), accounts receivable are $100 million, and its balance sheet shows inventory of $170 million. What is the inventory turnover ratio?

3. Discuss concentration risk and how portfolio optimization can be adjusted to manage.) concentration risk. What might be the consequence be to the feasible set and changes in the efficient frontier managing concentration risk?

Reference no: EM132056547

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