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7. I can buy a business that promises a $15,500 cash flow every year for the next 6 years. How much should I pay to

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7. I can buy a business that promises a $15,500 cash flow every year for the next 6 years. How much should I pay to acquire this business if I require a 14% rate of return? A B D E $50,274.35 $60.000.87 $60,274.35 $60,766.87 None of the above 8 If you purchased the above business for $55,000, then your NPV is... and you ...value A B D E $5,274.35; destroyed -$9,533.13; created $666.87.13; created $766.87.23; created None of the above 9. American Homage Inc. is reviewing a proposal for a new project. The purchase price of assets needed for the project is estimated to $120,000. The firm expects the following increases in the listed accounts: Accounts Receivable: $11,000 Accounts Payable: $16,000 Inventories: $3,000 How much net working capital will the firm need? A) B) $1,000 $2,000 $10,000 $12,000 None of the above D) E)

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