1.You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $150,000. The truck falls into the MACRS 5-year class, and it will be sold after 5 years for $15,000. Use of the truck will require an increase in NWC (spare parts inventory) of $4,500. The truck will have no effect on revenues, but it is expected to save the firm $66,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 30 percent. What will the cash flows for this project be during year 2?

2.Which of these is a capital budgeting technique that generates a decision rule and associated metric for choosing projects based on the total discounted value of their cash flows?

3.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?

4.If a firm has a cash cycle of 19 days and an operating cycle of 61 days, what is its payables turnover? (Round your answer to 2 decimal places.)

5.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.)