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A project will require $543,000 for fixed assets, $118,000 for inventory, and $142,000 for accounts receivable. Short-term debt is expected to increase by $65,000. The project has a six-year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. No bonus depreciation will be taken. The project is expected to generate annual sales of $905,000 with costs of $730,000. What is the project’s cash flow at Time 0?

Rodriguez Millwork is analyzing a proposed project that is expected to sell 1,450 units, ±3 percent. The expected variable cost per unit is $139 and the expected fixed costs are $123,000. Cost estimates are considered accurate within a ±1 percent range. The depreciation expense is $39,000. The sales price is estimated at $349 per unit, ±3 percent. What is the contribution margin per unit under the best-case scenario?

Chokkar Plastics is considering an expansion project with estimated fixed costs of $39,800, depreciation of $22,800, variable costs per unit of $5.74, and an estimated sales price of $12.99 per unit. How many units must the firm sell to break even on a cash basis?

Griggs Home Care has a book net worth of $29,700. Long-term debt is $4,800. Net working capital, other than cash, is $3,700 and fixed assets are $27,400. How much cash does the company have?

Comfy Furniture sells 3,300 couches per year at an average price of $1,130. The carrying cost per couch is $10.25 and the fixed order cost is $165. What is the economic order quantity for the couches?

McCallister’s just purchased $16,200 worth of inventory. The terms of the sale were 1/10, net 30. What is the implicit interest?

CJ Stores has current cash-only sales of 218 units per month at a price of $236.55 per unit. If it switches to a net 30 credit policy, the credit sales price will be $249 while the cash price will remain at $236.55. The switch is not expected to affect the sales quantity but a 3 percent default rate is expected. The monthly interest rate is 1.4 percent. What is the net present value of the proposed credit policy switch?

Assume a project has a sales quantity of 7,400 units, ±6 percent and a sales price of $59 per unit, ±1 percent. The expected variable cost per unit is $13, ±3 percent, and the expected fixed costs are $214,000, ±2 percent. The depreciation expense is $63,000 and the tax rate is 23 percent. What is the operating cash flow under the best-case scenario?

Revolution Bikes has credit sales of $822,400, costs of goods sold of $396,700, average accounts receivable of $43,200, and average accounts payable of $78,500. On average, how long does it take the credit customers of Revolution Bikes to pay for their purchases?

The Downtowner has 168,000 shares of common stock outstanding valued at $53 per share along with 13,000 bonds selling for $1,008 each. What weight should be given to the debt when the company computes its weighted average cost of capital?