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v 14, DK Pepper, Inc. is considering investing in a new project. The project costs $120,000 and is expected to generale 564,000 in year one,

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14, DK Pepper, Inc. is considering investing in a new project. The project costs $120,000 and is expected to generale 564,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. DK Pepper, Inc.'s required rate of return for this project is 10%. What is the project's NPVT a. 79,634.50 b. 66,362.95 c. 57,934.12 d. 40,010,87 15. Which of the following forms of business organization has the greatest ability to attract new capital? a. sole proprietorship b. general partnership c. limited partnership d. corporation 16. A popular strategy for managing working capital is the hedging principle, whereby short-term assets are financed by short-term financing and long-term assets are financed by long-term financing. A manager following this principle should seek to the company's a. Minimize; cash conversion cycle b. Minimize; days of payables outstanding c. Maximize; days of sales outstanding d. Maximize; days of sales in inventory 17. Mayuri is saving up for a new microwave. If she needs $261 in 7 months, how muc money must she put in her savings account today? Assume that the savings account pa 5% and is compounded monthly. a. $257.74 b. $253.51 c. $249.44 d. $238.50 8. The five basic principles of finance include all of the following except: a. Cash flow is what matters. b. Money has a time value. c. Incremental profits determine value. d. Risk requires a reward. 4 of 7

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