1.Suppose that Freddie's Fries has annual sales of $540,000; cost of goods sold of $415,000; average inventories of $13,000; average accounts receivable of $29,000, and an average accounts payable balance of $24,000. Assuming that all of Freddie's sales are on credit, what will be the firm's cash cycle? (Round your answer to 2 decimal places.)

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2.MC Enterprises estimates that it takes, on average, 13 days for their customers' payments to reach them, 1 day for the payments to be processed and deposited by their bookkeeping department, and 4 more days for the check to clear once they're deposited. What is their collection float?

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3.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.

Time 0 1 2 3 4 5 6

Cash Flow- 970 170 430 630 630 230 630

Use the discounted payback decision rule to evaluate this project; should it be accepted or rejected?

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4.Compute the PI static for your firm's new project if the appropriate cost of capital is 8 percent.(Do not round intermediate calculations and round your final answer to 2 decimal laces.)

Your firm's project

Time 0 1 2 3 4 5 6

Cash Flow -740 110 530 730 730 330 730

Should the project be accepted or rejected?