A company is considering a capital project that includes the purchase of a new machine costing $100,000. The machines estimated useful life is five years with no salvage value. The annual operating cash inflows from the project are shown below.

Given an effective income tax rate of 20% and using straight-line depreciation, what would be the projects net cash flow in Year 3?

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Harris Wholesale Grocery Company has gross sales per year of $7 million and grants credit terms to its customers of 2/5. net 15 As a result. 60% of customers pay on the discount date 20% pay on the net due date, and 20% pay on average 10 days after the due date Assuming that sales are uniform throughout the year and using a 360-day year In the calculation what is the approximate annual amount of discount that Hams customers are allowed to take?

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A company has hired a consultant to propose a way to increase the company’s revenues. The consultant has evaluated two mutually exclusive projects with me following information provided for each project.

The company uses a discount rate of 9% to evaluate both projects.

Based on the net present value, the company should invest in

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On January 1, 2008 the exchange rate between the U S dollar (S) and Indian Rupee (Rs) was $t = Rs 39. 2676. On January 1, 2009 the rate was Rs 1 = $0,0205.

Based only on the relative currency appreciation or depreciation, which country’s exports would likely have increased?

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A corporation has $80 million in current assets comprised of $30 million in inventory and $50 million in cash and marketable securities it has current liabilities of $50 million. If the corporation purchases an additional $10 million in inventory with trade credit this would

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Abex Employment Agency has requested an increase in the firm’s line of credit, and the bank is reviewing Abex’s sales and collections history Although the firm’s sales have increased the bank is concerned about the credit quality of the firm’s customers

Based on the following information calculate the average collection period for the firm Use a 365-day year in your calculations.

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A market in which no organized physical exchange exists is referred as a(n)

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Delman inc considering upgrading its manufacturing facility, and it is expected that the new equipment will cost $180,000. The project’s is considering similar to the risk of the firm’s other investments. the after-tax cash inflows attribute to this project are expected to increase by $50,000 every year over the next five years. The firm’s marginal tax rate is 30%, its debt-to-equal ratio (using market values) is 60%, and its pre-tax cost of debt and equity are 8% and 12% respectively. the weighted average cost of capital appropriate for evaluating this project is closest to

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A risk with a high frequency of occurrence but with a low impact, is best managed by which one of the following risk response strategies?

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if a company increases the price of its product from $3010 $35, demand would decrease from 30, 000 units to 20.000 units.

What is the price elasticity of demand for the company using the midpoint formula?

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