A proposed 4-year project has an initial cost of $236,000, projected sales of 4,500 units a year, a cash flow of $32 a unit, and a discount rate of 11 percent. Assume all operating cash flows occur on the last day of each year. If the project is abandoned after two years, the project's assets can be sold for $150,000. Below what level of annual sales, starting in Year 3, should the project be abandoned?

A) 3,119 units

B) 2,737 units

C) 4,067 units

D) 3,516 units

Al owns 250 shares of M&M Enterprises and earns 12.9 percent on his investment. M&M recently stated that it will pay dividends per share of $.69 this year and $.72 next year. Al does not want any dividend income this year but does want as much dividend income as possible next year. Ignoring taxes, what will Al's total homemade dividend be next year?

A) $352.50

B) $366.38

C) $374.75

D) $330.50

The market value balance sheet for Cherry Pie Corp. reflects cash of $31,020, fixed assets of $539,750, and equity of $286,800. There are 6,000 shares of stock outstanding with a par value of $1 per share. The company has announced that it is going to repurchase $20,000 of stock. What will the price of the stock be after this repurchase?

A) $47.80

B) $46.60

C) $46.20

D) $47.60

Specialty Co. deals strictly with three customers who pay monthly amounts of $340,800, $262,900, and $81,300. The $81,300 payment has a collection delay of 2.5 days while the other two have a delay of 1.5 days. What is the weighted average delay assuming each month has 30 days?

A) 1.98 days

B) 1.78 days

C) 1.62 days

D) 2.01 days