39) Compute the net present value of the project with the following cash flows if the appropriate cost of capital is 10 percent.

Time: 0 1 2 3 4 5 Cash flow: 175 75 0 100 75 150

Answer: (show calculations)

40) Compute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent.

Time: 0 1 2 3 4 5 Cash flow: 175 75 0 100 75 50

Answer: (please show calculations)

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Question Two20 points

Tucker Company's credit sales for 2019 was $56 million.Its year-end accounts receivable balance was $4 million.

Required:

(i) What is the company's accounts receivable turnover?

(ii) What is the company's average collection period?

Question Three30 points

(i) What is the future value of a $1,900 annuity payment over 7 years if interest rates are 9 percent?

(ii) What is the present value of a $1,900 annuity payment over 5 years if interest rates are 11 percent?

(iii) What is the present value, when interest rates are 7.5 percent, of a $750 payment made every year forever?

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Question Four30 points

(a) If the present value of an ordinary, 7-year annuity is $12,000 and interest rates are 7 percent, what's the present value of the same annuity due?

(b) Karim deposits $300 at the beginning of every month for 5 years, i.e., 60 months. How much money will he receive at the end of the 5th year if his savings grow at a rate of 1% per month?