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Cat Supplies offers terms of 1/10, net 30. The discount is taken by 71 percent of customers. What is the company’s average collection period?

It will cost $15,000 to acquire a used food truck that is expected to produce cash inflows of $8,500 per year for five years. After the five years, the truck is expected to be worthless. What is the payback period?

The Monster Truck operates several specialty vehicles that provide hot food and beverages for firms that have workers employed in outlying regions. The company has annual sales of $630,500. Cost of goods sold average 49 percent of sales and the profit margin is 6.2 percent. The average accounts receivable balance is $36,400. On average, how long does it take the company to collect payment for its services? Assume 365 days per year.

Cool Shades manufactures biotech sunglasses. The variable materials cost is $1.38 per unit, and the variable labor cost is $.92 per unit. Suppose the firm incurs fixed costs of $348,000 during a year in which total production is 136,000 units and the selling price is $19.50 per unit. What is the cash break-even point?

Serradel Studios is considering two independent projects. The profitability index decision rule indicates that both projects should be accepted. This result most likely does which one of the following?

Individual investors who continually monitor the financial markets seeking mispriced securities:

Any written proof that a customer owes you money for goods or services provided is referred to as a(n):

What is the expected return on a portfolio comprised of $9,750 of Stock X and $4,520 of Stock Y if the economy enjoys a boom period? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock X Stock Y Boom .25 .108 .156 Normal .65 .087 .097 Recession .10 .024 −.069

The market risk premium equals the:

Watson Landscaping is considering a project that will require additional inventory of $12,000 and will increase accounts payable by $19,000. Accounts receivable is currently $302,000 and is expected to increase by 5 percent if this project is accepted. What is the project’s initial cash flow for net working capital?