Joarder Technology was recently acquired, and the new owners replaced the company’s management team. The new team is implementing a restrictive short-term financial policy to replace the flexible policy under which they had been operating in the past. Which one of the following should the employees expect as a result of this policy change?

Decreasing which one of the following will increase the acceptability of a project?

High Mountain consistently sells 2,400 pairs of $189 skates annually. The fixed order costs is $56 and the carrying costs are $3.85 a pair. What is the economic order quantity?

Boyd Leasing is analyzing a project that requires purchasing $210,000 of new fixed assets. When the project ends, those assets are expected to have an aftertax salvage value of $22,000. How is the $22,000 salvage value handled when computing the net present value of the project?

Just Shoes currently has a 32.6-day cash cycle. Assume the company changes its operations such that it decreases its receivables period by 3.1 days, increases its inventory period by 1.8 days, and increases its payables period by 2.2 days. What will the length of the cash cycle be after these changes?

If the variability of the returns on large-company stocks were to decrease over the long-term, you would expect which one of the following as related to large-company stocks to occur as a result?

With respect to capital project analysis, which of the following statements is accurate?

Mendoza Lighting sells 72 units per month at an average price of $529 per unit. The company thinks it can increase sales by an additional 24 units per month if it switches to a net 30 credit policy. The monthly interest rate is .32 percent and the variable cost per unit is $317. What is the incremental cash inflow of the proposed change in the credit policy?

Gutierrez Goods has several proposed independent projects that have positive NPVs. However, the firm cannot initiate any of the projects due to a lack of financing. This situation is referred to as:

Bui Bakery has a required payback period of two years for all of its projects. Currently, the firm is analyzing two independent projects. Project X has an expected payback period of 1.4 years and a net present value of $6,100. Project Z has an expected payback period of 2.6 years with a net present value of $18,600. Which project(s) should be accepted based on the payback decision rule?