1) Compute the PI statistic for Project Q if the appropriate cost of capital is 13 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

Project Q
Time:	0	1	2	3	4
Cash flow:	$12,700	$4,200	$5,030	$4,920	$3,000

Should the project be accepted or rejected?

2) Suppose a firm pays total dividends of $696,000 out of net income of $2.4 million. What would the firms payout ratio be? (Round your answer to 2 decimal places.

3) Suppose a firm has a retention ratio of 26 percent and net income of $4.1 million. How much does it pay out in dividends? (Enter your answer in dollars not in millions.)

4) Assume a firm has a cash cycle of 59 days and an operating cycle of 88 days. What is its average payment period?

5) Assume a firm has a cash cycle of 40 days and an operating cycle of 67 days. What is its average payment period?

6) Assume a firm has a cash cycle of 77 days and an operating cycle of 135 days. What is its payables turnover? (Use 365 days a year. Round your answer to 2 decimal places.)

Payable's turnover will be 365 days/58 days = 6.29 times.