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Lyman Nurseries purchased seeds costing $25000 with terms of 3/15 net 30 EOM on January 12. How much will the firm pay if it takes the cash discount? What is the approximate cost of giving up the cash discount, using the simplified formula?

questions 1) All of the following are anticipated effects of a proposed project. Which of these should be included in the initial project cash flow related to net working capital? a) an inventory decrease of $5000 b) an increase in accounts receivable of $1500 C)an increase in fixed assets of $7600 d) a decrease in

Paul Stone can get 3/15, net 65 from his suppliers. Paul would like to delay paying the suppliers as long as possible because his cash account balance is very low, but his Dad, a famous financial expert, recommends that he borrow from his local bank at 10% and pay early to take advantage of the

4 questions 1) Thompson jet skis has operating cash flow of $218. Depreciation is $45 and interest paid is $35. A net total of $69 was paid on long-term debt. The firm spent $180 on fixed assests and increased net working capital by $38. What is the amount of the cash flow to stockholders? 2)

It is expected to produce US$3.5 million in revenue annually the first year and grow 5% per year thereafter. The project will increase operating expenses by US$1.75 million the first year and grow at 3% annually per year thereafter. The project cost US$6 million in capital, and the capital will be depreciated on a straight-line

A comapny is considering a proposed expansion to its facilities. Which of the following statements is most correct? a. In calculating the projects operating cash flow, the firm should not substract out financing cost such as interest expense, since these cost are already included in the WACC, which is used to discount the projects net

Tapley Dental Associates is considering a project that has the following cash flow data. What is the project’s payback? Year: 0 1 2 3 4 5 Cash flows: -$1,000 $300 $310 $320 $330 $340

You are heading up your firm’s capital investment evaluation efforts. Currently, the capital investment group is deliberating over the three investment proposals below. They are not mutually exclusive. Your company uses a 12% annual rate to discount cash flows for NPV. The following table presents the costs of each investment (negative values in time zero)

Can you help me understand this question? 5. An investment project has the cash flow stream of $-250, $75, $125, $100, and $50. The cost of capital is 12%. What is the discounted payback period? 3.15 years 3.38 years 3.45 years 3.60 years 4.05 years

1. (Ignore income taxes in this problem) The management of Byrge Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 8 years. The company uses a discount rate of 10% in its capital budgeting. The net present value