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You are purchasing a new car for $35,000 and have been given a promotional offer by the dealership which allows you to purchase the vehicle using 0% APR financing on a 60 month loan.   You had intended to use your credit union, which had agreed to finance the car at 9.6% APR, but you certainly now prefer to accept the dealership’s offer.  How much did you save by taking the 0% APR deal?

You have $10,000 that you want to invest for the next five years, at which point you need to use it to buy a car worth $15,000.  What annual interest rate do you need to earn in order to reach that goal?

Your bank offers to lend you $10,000 at an interest rate of 4.8% compounded quarterly.  What is the effective annual rate that is equivalent to this nominal rate?

What is their inventory turnover ratio?

What is the quick ratio for this firm?

How many days does this firm hold onto inventory, or in other words, what is their days in inventory?

Is this statement true or false? When the interest rate increases, the present value of a future cash flow will be worth less.

What is the net working capital for this firm?

What is this firm’s days payable outstanding?  Or in other words, how many days to they wait before remitting their accounts payable?

List two disadvantages, and two advantages of a corporate form of business in comparison to sole proprietorships or partnerships.