A firm with a flexible short-term financial policy will:

A project with an initial investment of $448,100 will generate equal annual cash flows over its 9-year life. The project has a required return of 8.8 percent. What is the minimum annual cash flow required to accept the project?

Cori’s Dog House is considering the installation of a new computerized pressure cooker for hot dogs. The cooker will increase sales by $8,600 per year and will cut annual operating costs by $14,700. The system will cost $50,400 to purchase and install. This system is expected to have a 7-year life and will be depreciated to zero using straight-line depreciation and have no salvage value. The tax rate is 21 percent and the required return is 12.2 percent. What is the NPV of purchasing the pressure cooker?

A stock had returns of 17.43 percent, −4.89 percent, and 20.12 percent for the past three years. What is the variance of the returns?

The Cellar Door currently sells 1,849 units per month for total monthly sales of $627,800. The company is considering replacing its current cash-only credit policy with a net 30 policy. The variable cost per unit is $214 and the monthly interest rate is .87 percent. What is the new sales quantity at the switch break-even level of sales?

The top-down approach to computing the operating cash flow:

Which one of the following is defined by its mean and its standard deviation?

The net present value of a project will increase if:

An increase in which one of the following is an indicator that an accounts receivable policy is becoming more restrictive?

Gateway Communications is considering a project with an initial fixed assets cost of $1.74 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $232,000. The project will not change sales but will reduce operating costs by $383,500 per year. The tax rate is 21 percent and the required return is 10.7 percent. The project will require $48,000 in net working capital, which will be recouped when the project ends. What is the project’s NPV?