Company A has a times-interest-earned ratio of 5.9, and company B has a times-interest-earned ratio of 6.4. A is a competitor of B. What conclusions would the chief financial officer of A arrive at looking at these numbers and his competitor's?

Question 14 options:

	The times-interest-earned ratio is of no interest to lenders because the ratios are so close together.
	Company A is in a better position to pay interest than it was last year.
	A times-interest-earned ratio of 5.9 is better than a times-interest-earned ratio of 6.4.
	Company B is in a better position to pay interest than company A.

Question 15 (1 point)

PKU Company needs to replace a machine in 4 years. The new machine is expected to cost $35,000. How much does PKU have to put into a savings account today to have enough saved to purchase the machine, assuming an annual interest rate of 2%, compounded annually? (round to the nearest dollar)

Question 15 options:

	$32,360
	$35,000
	$32,335
	$34,313

Question 16 (1 point)

CFR Company sold equipment to ABC Company in exchange for a note receivable. The note charges 12% annually, and ABC is required to make monthly payments of $500 for the next 24 months. What is the present value of the note receivable? (round to the nearest dollar)

Question 16 options:

	$10,622
	$20,073
	$3,892
	$24,798

Question 17 (1 point)

You have won the local lottery and will receive $1,000 cash each year for three years. If the discount rate is 5%, what is the present value of this award (rounded to the nearest dollar)?

Question 17 options:

	$ 4,580
	$ 3,150
	$ 2,591
	$ 2,723