QUESTION 22 Use the following information to answer the next bro questions: The owner of Madison Pran Designs is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for the following months: November $30,000 December $24,000 January $16.000 February $21.000 Collection of sales is expected to be as follows: 20% within the month of sale: 70% the month following the sale; and 10% the second month following the sale. Total labor and raw materials costs are expected to be incurred as follows: November $12.000 December $9,500 January $10,500 February $13,000 These labor and raw materials costs (above) are paid for the month after they are incurred. Salaries cost the firm $4,000 per month: lease payments are $1000 per month; depreciation charges are expected to be $600 per month; an income tax payment of S900 will be made in January, and a payment of $1500 for advertising will be made in February. Cash on hand on January 1st will amount to $3,000, and a target cash balance of $10,000 will be maintained throughout the cash budget period. Prepare a monthly cash budget for January and February and answer the following: Calculate total collections of sales for January O A none of the other choices is correct OB. $22.400 OC. $19.000 OD. $23.600 Use the following information to answer the next 2 questions: Morgan Pavloske & Company is evaluating two mutually, exclusive projects (expected cash flows shown below). The firm's cost of capital is 11 percent. Year Project A Project B 0 (4000) (4000) 1 2500 2200 2 1900 1700 3 2200 2800 NPV IRR Which of the following is most CORRECT? O A For Project A, the IRR is 29.42% and the NPV is $1,453.51. OB. For Project B, the IRR is 29.53% and the NPV is $1,409.08. oc For Project A, the IRR is 29.81% and the NPV is $1,321.79. OD For Project B, the IRR is 29.53% and the NPV is $1,654.36. For Project A, the IRR is 29.81% and the NPV is $1,396.22. OE