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Webster Iron Works started a new project last year. As it turns out, the project has been operating at its accounting break-even level of output and is now expected to continue at that level over its lifetime. Given this information, you know that the project:

You are compiling a spreadsheet with column headings of: Invoice number; Customer number; < 30 days; 31-60 days; 61-90 days; > 90 days. You will list every unpaid invoice with the amount owed entered into the appropriate column based on the number of days between the sale date and today. Once you have completed that, you will sort the report by customer number and total the amounts listed in each column. What is this report called?

POD has a project with the following cash flows: Year Cash Flows 0 −$ 251,000 1 147,000 2 164,500 3 129,600 The required return is 8.3 percent. What is the profitability index for this project?

A company has a current ratio of 1.2. Which one of the following actions will increase the company’s net working capital?

Which of the following yields on a stock can be negative?

The accounts receivable approach to credit policy supports the theory that:

A 4-year project has an annual operating cash flow of $47,500. At the beginning of the project, $3,850 in net working capital was required, which will be recovered at the end of the project. The firm also spent $21,600 on equipment to start the project. This equipment will have a book value of $4,340 at the end of the project, but can be sold for $5,430. The tax rate is 21 percent. What is the Year 4 cash flow?

A project is expected to provide cash flows of $12,450, $12,800, $15,900, and $10,400 over the next four years, respectively. At a required return of 8.7 percent, the project has a profitability index of .876. For this to be true, what is the project’s cost at Time 0?

Grill Works has 6 percent preferred stock outstanding that is currently selling for $49 per share. The market rate of return is 14 percent and the tax rate is 21 percent. What is the cost of preferred stock if its stated value is $100 per share?

Mercado is considering a change in its cash-only sales policy. The new terms of sale would be net one month. The required return is .98 percent per month. Currently, the firm sells 420 units per month at $736 per unit. Under the new policy, the firm expects sales of 475 units also at $736 per unit. The variable cost per unit is $426. What is the NPV of switching?