Question
7.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
7.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?
8.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?
9.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.)
10.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.)
11.Hollywood Shoes would like to maintain their cash account at a minimum level of $66,000, but expect the standard deviation in net daily cash flows to be $5,600; the effective annual rate on marketable securities to be 6.25 percent per year; and the trading cost per sale or purchase of marketable securities to be $260 per transaction. What will be their optimal upper cash limit? (Round your answer to the nearest dollar amount.)
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