You are working on a bid to landscape two city parks per year for the next three years. This project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. Ignore bonus depreciation. The equipment can be sold at the end of the project for $115,000. You will also need $18,000 in net working capital for the duration of the project. The fixed costs will be $37,000 per year and the variable costs will be $148,000 per park. Your required rate of return is 14 percent and your tax rate is 21 percent. What is the minimal amount you should bid per park? (Round your answer to the nearest $100).

The customers of Kendrick Heavy Equipment take an average of 54.3 days to pay for their purchases. From the time that Kendrick buys new inventory until its sells that inventory to customers, an average of 61.1 days elapse. Kendrick pays for the inventory, on average, 59.8 days after purchasing it. Given this information, what is the length of its cash cycle?

Harper Motors sells 39 cars per month at an average price of $24,920. The carrying cost per car is $158 and the fixed order cost is $694. How many orders should the company place per year?

Squires Formal Wear sells goods on credit with payment due 30 days after purchase. If payment is not received by the 30th day, the store mails a friendly reminder to the customer. If payment is not received by the 45th day, the store calls the customer and requests payment and also stops offering credit to that customer. These procedures reflect the store’s:

McCallister’s just purchased $16,200 worth of inventory. The terms of the sale were 1/10, net 30. What is the implicit interest?

Cat Supplies offers terms of 1/10, net 30. The discount is taken by 71 percent of customers. What is the company’s average collection period?

You purchased a stock at a price of $60.66. The stock paid a dividend of $2.27 per share and the stock price at the end of the year was $68.36. What was the total return for the year?

Any written proof that a customer owes you money for goods or services provided is referred to as a(n):

A project has a contribution margin per unit of $12.07, fixed costs of $67,840, depreciation of $14,310, variable costs per unit of $14.09, and a financial break-even point of 15,624 units. What is the operating cash flow at this level of output?

A suggested project requires initial fixed assets of $227,000, has a life of 4 years, and has no salvage value. Assume depreciation is straight-line to zero over the life of the project. Sales are projected at 31,000 units per year, the price per unit is $47, variable cost per unit is $23, and fixed costs are $842,900 per year. The tax rate is 23 percent and the required return is 11.5 percent. Suppose the projections given for price and quantity can vary by ±4 percent while variable and fixed cost estimates are accurate to within ±2 percent. What is the best-case NPV?