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? [5 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? [5 marks] Q3. A credit card compounds interest monthly and has an effective annual rate of 12.67 percent. What is the annual percentage rate? [5 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? [3 marks] Q5. During the year, Lasko's repaid $12,500 in long-term debt, borrowed $8,400, paid $611 in interest and $740 in dividends, and had an operating cash flow of $16,207. The firm acquired $33,500 in new fixed assets and sold $8,400 of old assets. Net working capital declined by $1,592 during the year. What is the annual cash flow to stockholders? [5 marks] Q6. An investment project has an initial cost of $382, and cash flows $105, $130, $150, and $150 for Years 1 to 4, respectively. The cost of capital is 9 percent. What is the discounted payback period? [5 marks] Q7. The Lo Sun Corporation offers a bond with a current market price of $1,029.75, a coupon rate of 8 percent, and a yield to maturity of 7.52 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures? [5 marks] Q8. The Mill Wheel is considering a project with a life of 3 years that will require $289,400 for fixed assets, $36,700 for inventory, and $27,800 for accounts receivable. The short-term debt for this project is $16,500. The fixed assets will be depreciated straight-line to a zero book value over 5 years. At the end of the project in Year 3, the fixed assets can be sold for 20 percent of their original cost. In this project, all relevant items for the net working capital will incur in Year 0 and return to zero at the end of the project in Year 3. The project is expected to generate annual sales of $275,000 and costs of $198,000. The tax rate is 21 percent and the required rate of return is 16 percent. What is the amount of the cash flow in the project's final year? [5 marks]