Which one of the following is a direct bankruptcy cost? management time spent on the bankruptcy process maintaining an emergency cash fund Using less than the optimal amount of debt financing loss of a key employee fee paid to a bankruptcy All else equal, the payback period for a project will decrease whenever the initial cost increases. required return for a project increases assigned discount rate decreases. cash inflows are moved earlier in time. duration of a project is lengthened. A firm commitment arrangement with an investment banker occurs when: the syndicate is in place to handle the issue. the spread between the buying and selling price is less than one percent. the issue is solidly accepted in the market evidence by a large price increase when the investment banker buys the securities for less price offering price and accepts the risk of not being able to sell them. when the investment banker sells as much of the security as the market can hear without a price decrease. Pete's Boats has beginning long term debt of $310 and ending long-term debt of $280, The beginning and ending total debt balances are $350 and $370, respectively, The paid is $50. What is the amount of the cash flow to creditors? -$30 $0 $20 $30 $80 All of the following are anticipated effects of a proposed project. Which of these should be included in the initial project cash flow related to net working capital? An inventory decrease of $5,000 An increase in accounts receivable of $1, 500 An increase in fixed assets of $7, 600 A decrease in accounts payable of $2, 100 I and II only I and III only and II only IV I, II and IV only I II, III and IV