Which of the following methods of evaluating investment projects can properly evaluate projects of unequal lives?
A) the internal rate of return
B) the net present value
C) the equivalent annual annuity
D) the payback
C
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________ sell and deliver a limited line of semiperishable goods to supermarkets, grocery stores, hospitals, restaurants, and hotels
A) Producers' cooperatives B) Cash and carry wholesalers C) Truck wholesalers D) Drop shippers E) Rack jobbers
CBD Computer Inc. is attempting to estimate its needs for funds during each of the months covering the third
quarter of 20XX. Pertinent information is given below: a. Past and estimated future sales for 20XX: April $80,000 July $90,000 May 95,000 August 130,000 June 70,000 September 110,000 October 140,000 b. Rent expense is $2,500 per month. c. A quarterly interest payment on $100,000 in 7% notes payable is to be paid during September, 20XX. d. Wages and salaries are estimated as follows: July $8,000 August 10,000 September 12,000 Payments are made within the month in which the wages are earned. e. Sixty percent of sales are for cash, with the remaining 40% collected in the month following the sale. f. CBD pays 80% of the sales price for merchandise and makes payment in the same month in which the sales occur, although purchases are made in the month prior to the anticipated sales. g. CBD plans to pay $7,500 in cash for a new forklift truck in July. h. Short-term loans can be obtained at the end of each month at 13% annual interest with interest paid during each month for which the loan is outstanding. i. CBD's ending cash balance for June 30, 200X is $67,000: the minimum balance the firm wishes to have in any month is $35,000. Required: Set up a cash budget for CBD for the quarter ended September 30, 20XX.
?A convertible bond has the following features: Coupon 6.5% Maturity date 10 years Exercise price $20 Principal $1,000 Call price $1,065 ? Convertible preferred stock Annual dividend $2.25 Convertible into 2.5 shares of common stock Callable at $25 a share ? Currently the common stock is selling for $13; the yield on non?convertible bonds is 10%, and the yield on comparable preferred stocks is 14%. What is the value of the above securities in terms of the common stock? What would be the value of each security if it lacked the conversion feature?
What will be an ideal response?
One of the cost impact and payoff analysis tools from the operations consulting tool kit is gap analysis.
Answer the following statement true (T) or false (F)