Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please give answers of all questions. Need only answers............... 11. Suppose your firm is offered terms of 1/15 net 45 on its purchases. Assuming that

Please give answers of all questions. Need only answers...............

image text in transcribed

image text in transcribedimage text in transcribed

11. Suppose your firm is offered terms of 1/15 net 45 on its purchases. Assuming that your fim intends to buy on credit, good cash management practice suggests that a rational purchaser should pay only on which of the following days? a. b. c. d. e. As soon as possible Day 10 or Day 30 Day 15 or Day 45 Day 1, Day 10, or Day 30 Day 1, Day 15, or Day 45 12. You are analyzing four mutually exclusive projects and calculate the following using your firm's cost of capital of 13%; Project A Project B Project C Project D NPV:-$5,568.63, IRR: 12.50%. Payback Period: 6.72 years, PI: O.98 NPV:-$25398.79, IRR: 12.89%, Payback Period: 3.72 years. PI: 0.85 NPV:-$2,366.78, IRR: 6.79%, Payback Period: 1.72 years, PI: 0.97 NPV-S 12.983. 12, IRR: 12.19%, Payback Period: 4.72 years, PI: 0.99 Which project should you choose? a. Project A b. Project B c. Project C d. Project D e. None of the projects e same,costs are greatest when the firm holds a small quantity of All else the inventory, and hand. 13. costs are greatest when there is a large quantity of inventory on a. carrying: opportunity b. opportunity, shortage c. shortage; carrying d. carrying: shortage e. opportunity; carrying 14. Which of the following will tend to increase collection float? a. b. c. d. Not allowing electronic transfer of funds by customers. Customers paying through regular mail rather than an overnight delivery service. Your accounting department taking longer to deposit the customers' payments. Your bank extending the period of time before the deposited funds are available to spend All of the above e. 4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Broadcasting Finance In Transition

Authors: Jay G. Blumler, T. J. Nossiter

1st Edition

0195050894, 978-0195050899

More Books

Students also viewed these Finance questions

Question

What is the purpose of creating hierarchies of date fields?

Answered: 1 week ago

Question

Explain why a demand curve slopes downward.

Answered: 1 week ago