A firm, which is currently operating at full capacity, has sales of $2,320, current assets of $660, current liabilities of $350, net fixed assets of $1,510, and a 5% net profit margin. The firm has no long-term debt and does not plan on acquiring any. The firm does not pay any dividends. Sales are expected to increase by 10% next year. If all assets, short-term liabilities, and costs vary directly with sales, how much external equity financing is needed for next year?

1. $54.40
2. $11.60
3. $170.40
4. $232.00
5. $243.00

For an independent, conventional project, which of the following could be correct for a particular project:

1. If NPV > 0, then IRR > RRR, and IRR > PI
2. If NPV > 0, then IRR > RRR, and PI < 0
3. If NPV > 0, then IRR > PI, and IRR > 1
4. If NPV < 0, then IRR < 0, and PI < 1
5. If NPV > 0, then IRR > RRR, and PI > 1