Industrial Industries' 2023 balance sheet shows current assets of $2,150 and current liabilities of $1,445. Their 2024 balance sheet shows current assets of $2,400 and current liabilities of $1,550. What was the firm's investment in net working capital for 2024?

a. 290

b. 508

c. 145

d. 73

e. 218

You are considering the purchase of an annuity which will pay you $2,500 per quarter for 25 years. Assuming you require a minimum return of 4.75% percent per year, what is the most you are willing to pay to buy this annuity?

$143,972

$137,117

$145,869

$129,109

$131,632

Consolidated Industries' Financial Statements show the following: Net Income = 1,000; Sales = 8,000 Account Receiveable = 1,600; Accounts Payable = 1,200; Salaries = 700; Rent = 400; Current Assets = 2,800; Current Liabilities = 2,400; Interest 300; Total Liabilities = 3,600; Total Assets = 7,000; Total Equity = 3,400. What is the Common Sized Value for Salaries?

10%

8.8%

25.0%

70.0%

20.6%

You just won a lottery that will pay you $200,000 per year for 20 years, starting today. Alternatively, they will pay you one time payment of $2,800,000. What discount rate was assumed to calculate the one time payment?

3.85%

3.45%

3.67%

3.52%

4.12%

Last year, Industrial Industries had Operating Cash Flow of 45,000. It had Net Capital Spending of 75,000 and an investment in Net Working Capital of 50,000. What was its Cash Flow from Assets (or Free Cash Flow)?

(80,000)

205,000

70,000

20,000

170,000

Industrial Industries' 2023 balance sheet shows current assets of $2,150 and current liabilities of $1,445. Their 2024 balance sheet shows current assets of $2,400 and current liabilities of $1,550. What was the firm's investment in net working capital for 2024?

290

508

145

73

218

Assuming a required return of 8.5%, how much would you be willing to pay for an investment that pays you and your heirs $250,000 per year in perpetuity?

3,009,769

2,603,247

2,764,706

2,941,176

3,052,235

You are considering an investment that will pay you $800 in one year, $100 in three years and $600 in four years. If investors require a return of 5.5%, what price should it sell for?

1174

1464

1328

1234

1034