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Make sure answers are correct and show formulas used please Q1. Foxglove Interiors has net fixed assets of $38,215, long-term debt of $22,400, cash of
Make sure answers are correct and show formulas used please
Q1. Foxglove Interiors has net fixed assets of $38,215, long-term debt of $22,400, cash of $560, accounts payable $4,611, inventory of $11,408, and accounts receivable of $3,462. How much net working capital does the firm have? [2 marks] Q2. You just paid $525,000 for a security that will pay you and your heirs $25,000 a year forever. What rate of return will you earn? [2 marks] Q3. A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? [4 marks] Q4. A project costing $6,200 initially should produce cash inflows of $2,860 a year for three years. The first cash inflow comes in Year 1. After the three years, the project will be shut down and will be sold at the end of Year 4 for an estimated net cash amount of $3,300. What is the net present value of this project if the required rate of return is 11.3 percent? [4 marks]
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