1) Match drawbacks to the following capital budgeting techniques

IRR (Provide conflicting answers w/ NPV for independent projects, Favor projects with early positive cash flow, or bias against short-term projects)

PI (Provide conflicting answers w/ NPV for independent projects, Favor projects with early positive cash flow, or bias against short-term projects)

Payback Period ( Provide conflicting answers w/ NPV for independent projects, Favor projects with early positive cash flow, or bias against short-term projects)

2) Below are the estimated current assets and current liabilities of the new dealership for the first two years.

Year 1 Inventory 473,000 Accounts payable 202,000

Year 2 Inventory 568,000 Accounts payable 202,000 What is the change in net working capital in year 2? The cash flow at year 2 = $____________

Question 6 0.5 pts Prior to IST Consulting firm completing the survey and providing the information. Christina purchased a lotin Chambersburg, PA at a deep discount for $236.000. The lot will be used to build the dealershia city of the project is approved. The market value of the lot is $310,000. The building cost for the state of the art facility is estimated to be $4,000,000. The equipment cost is $3.000.000. What is the initial cash flow of the project? The initial cash flow-$ use a minus sign for a negativt cash flow