31- Off Roadin' Inc. builds customized ATVs. On average, it uses 40 tires a day in its manufacturing process. It takes 4 days to receive a shipment of tires once an order is placed. Off Roadin' has a policy of maintaining 80 tires as a safety stock. What is the reorder point level of inventory?

Multiple Choice

• 160

• 320

• 80

• 240

• 0

34- Hartley, Inc. needs to purchase equipment for its 2,000 drive-ins nationwide. The total cost of the equipment is $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually in perpetuity. Hartley has a market value debt-to-assets ratio of 40%. The firm's cost of equity is 13%, its pre-tax cost of debt is 8%, and the flotation costs of debt and equity are 2% and 8%, respectively. The tax rate is 34%. Assume the project is of similar risk to the firm's existing operations. After considering flotation costs, what is the NPV of the proposed project?

Multiple Choice

• $7,072

• $178,675

• -$2,957

• $2,091

• $428

35-

Beginning	Ending
Inventory	$800	$950
Accounts receivable	1,100	1,200
Accounts payable	750	650
Credit sales	$8,420
Cost of goods sold		$6,250

What is the inventory turnover?

Multiple Choice

• 7.8 times

• 8.9 times

• 6.6 times

• 10.5 times

• 7.1 times

38- Mojave Inc. has credit terms of 3/15, net 45. Based on experience, 67% of all customers will take the discount. Given this information, calculate average collection period.

Multiple Choice

• 28.30 days

• 24.90 days

• 25.00 days

• 27.20 days

• 26.10 days