Assume you will receive $7,000 in 3 years. If the interest rates increase, then:

		Cannot be determined without additional information.
		The present value of that amount will fall, because it will be discounted at a higher rate.
		none of the proposed choices
		The present value of that amount will rise, because it will be discounted at a lower rate.
		The present value will remain unchanged.

You are planning to get a graduate degree. You will need $50,000 in 3 years from now to start your studies. Suppose you can earn 5% on your deposits. How much do you need to deposit today to have the required amount for the graduate studies?

		$28,587
		$34,723
		none of the proposed choices
		$50,000
		$43,192

ABC Industries has accounts receivable of $700, inventory of $1,200, sales of $4,200, and cost of goods sold of $3,500. How long does it take ABC to both sell its inventory and then collect the payment on the sale?

		210 days
		110 days
		131 days
		125 days
		145 days