QUESTION 13 A perpetuity has a PV of $40,000. If the interest rate is 6%, how much will the perpetuity pay every year? A. $600 B. $960 C. $1200 D. $2,400 QUESTION 14 The firm's need for borrowing or its ability to pay its loans can be predicted by: O A. Income statement B. Cash budget C. Balance sheet D. Ratio analysis QUESTION 17 Which one of the following equals the operating cycle? O A. cash cycle plus accounts receivable period B. average age of inventory plus average collection period C. inventory period plus the accounts payable period D.accounts payable period minus the cash cycle