The Hope Corporation has been presented with an investment o…

The Hope Corporation has been presented with an investment opportunity which will yield end of year cash flows of: $80,000 per year in Year 1 $50,000 per year in Year 2 $60,000 in Year 3 This investment will cost the firm $100,000 today, and the firm’s required rate of return is 12 percent. What is the NPV for this investment? (Select the closest answer.)

The Lumber Company had the following balance sheet and incom…

The Lumber Company had the following balance sheet and income statement information. Balance  Sheet on December 2019: Cash $   120 A/R 900 Inventories 4,000 Total CA $5,020 Debt $3,000 Net Fixed Asset 2,980 Equity 5,000 Total Assets $8,000 Total Liability & Equity $8,000 Income Statement during 2019: Sales $10,800 Cost of goods sold 10,000 EBIT $        800 Interest (12%) 360 EBT $       440 Taxes (%40) 176 Net Income $        264 The industry days sales outstanding (DSO) is 16.  If management can improve the credit department and collection procedure sufficiently to reduce DSO to the industry average (16), how much cash could be freed up?  Assume that the sales level will remain constant. [DSO=AR/ (Annual Sales/360)]