Which of the following changes in working capital will result in an increase in

cash flows?

A$)$ Increase in accounts payable

B$)$ Increase in inventories

C$)$ Increase in accounts receivable

D$)$ Decrease in other current liabilities

$12.$ A credit card account that charges interest at the rate of $1\mathrm{.}25\%$ per month would have an

annually compounded rate of $\_\_\_\_\_\_\_\_\_$ and an APR of $\_\_\_\_\_\_\_\_\_.$

A$)16\mathrm{.}08\%$; $15\mathrm{.}00\%$

B$)14\mathrm{.}55\%$; $16\mathrm{.}08\%$

C$)12\mathrm{.}68\%$; $15\mathrm{.}00\%$

D$)15\mathrm{.}00\%$; $14\mathrm{.}55\%$

$13.$ What is the minimum nominal rate of return that you should accept if you require a $4\%$ real

rate of return and the rate of inflation is expected to average $3\mathrm{.}5\%$ during the investment

period?

A$)7\mathrm{.}36\%$

B$)7\mathrm{.}50\%$

C$)7\mathrm{.}64\%$

D$)8\mathrm{.}01\%$

$14.$ Lester's just signed a contract that will provide the firm with annual cash inflows of $$28,000,$

$$35,000,$ and $$42,000$ over the next three years with the first payment of $$28,000$ occurring

one year from today. What is this contract worth today at a discount rate of $7\mathrm{.}25\%?$

A$)$ $$88,311\mathrm{.}08$

B$)$ $$89,423\mathrm{.}91$

C$)$ $$90,580\mathrm{.}55$

D$)$ $$91,341\mathrm{.}41$