1. Company A has an outstanding debt obligation (total of principle and interest due) to Company B of $250 (Assume this is Simple's only debt.). It is year end and the total cash flow of Simple from all sources is $325. The contingent payoff to the debt and equity holders of Compnay A is:

		$250; $75
		$250; $325
		$75; $250
		$325; $250
		none of the other responses are reasonable

1. A new project is being considered by investors in the area. An outlay of $40,000 is required for equipment and an additional net working capital investment of $1000 is required. What is the total cost at time zero of accepting this project?

		40,000
		41,000
		30,000
		31,000
		Insufficient info