Reference no: EM133376577
Question 1) Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 13 percent, and that the maximum allowable payback and discounted payback statistic for the project are 2 and 3 years, respectively.
Question 2) Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 13 percent, and that the maximum allowable payback and discounted payback statistic for the project are 3 and 4.5 years, respectively.
Use the NPV decision rule to evaluate this project; should it be accepted or rejected?
Question 3) Elle Mae Industries has a cash balance of $57,000, accounts payable of $185,000; inventory of $225,000; accounts receivable of $285,000; notes payable of $217,000; and accrued wages and taxes of $47,000. How much net working capital does the firm need to fund?
Question 4) Scribble, Incorporated has sales of $90,000 and cost of goods sold of $74,000. The firm had a beginning inventory of $20,000 and an ending inventory of $22,000. What is the length of the days' sales in inventory?