1. Bass Company has the following data. Inventory conversion period =50 days Average collection period =17 days Payables deferral period =33 days Select one:
What is the present value (t = 0) if the discount rate is 12 percent? Select one: A. $3,277 B. $4,804 C. $5,302 D. $4,289 E. $2,804
Question 3 You deposit $1,000 in a savings account that pays 9 percent interest, compounded quarterly. How much will your account be worth in 6 years? Select one: A. $1, B. $1, C. $1, D. $1, E. $7,
Question 4 You can earn 8 percent interest, compounded annually. How much must you deposit today to withdraw $10,000 in 5 years? Select one: A. $5, B. $6, C. $ D. $3, E. none of the above
Question 5 If a 5-year annuity due has a present value of $1,000, and if the interest rate is 10 percent, what is the amount of each annuity payment? select one: A. $ B. $ C. $ D. $ E. $
Question 6 Assume that you will receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of the year. Select one: A. $ 9,851 B. $13,250 C. $11,714 D. $16,143 E. $12,741
Question 7 You can earn 15 percent interest, compounded monthly. How much must you deposit today to withdraw $4,000 in 10 years? Select one: A. $ B. $ C. $ D. $ E. $
Question 2 You are given the following cash flows
Question 8 Brown Sons recently reported sales of $100 million, and net income equal to $5 million. The company has $70 million in total assets. Over the next year, the company is forecasting a 20 percent increase in sales. Since the company is at full capacity, its assets must increase in proportion to sales. Continue reading “What is the firm’s cash conversion cycle?”