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4. Suppose the following table give the nominal value of sales, accounts receivable, purchases, and accounts receivable. year 0 1 2 sales 1,000 1,500 2,000

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4. Suppose the following table give the nominal value of sales, accounts receivable, purchases, and accounts receivable. year 0 1 2 sales 1,000 1,500 2,000 accounts receivable 0 100 150 200 purchases 500 750 1,000 accounts payable 0 50 75 100 receipts expenditures net cash flow a) Find the receipts, expenditures, and the net cash flow for each period of operation b) Explain how an increase in accounts receivable or desired cash balances would affect the net present value of a project's cash flow. c) Explain why we convert real values to nominal value, and then convert nominal values back to real values in the cash flow analysis

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