The faster a firm grows, the greater is the shortfall in cash and the firm might borrow funds from the bank on a revolving credit arrangement. Why?
a. Most of the cash outflows for expenses occur before the firm receives the cash inflows from a sale.
b. The lag between cash outflows and cash inflows can lead to cash shortfalls.
c. Cash disbursements to employees and suppliers precede cash collections from customers.
d. all of the above
e. none of the above
D
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Indicate whether the statement is true or false
If you are delivering a message and the receivers have a puzzled look, you can surmise ______.
a. they are upset b. they are not listening c. they dislike you d. they do not understand
The annual discount rate is 9%. Compute the present value of the third option. (Round to nearest whole dollar.)
Gloria Ammon has just won the state lottery and has the following three payout options for after-tax prize money:
1. $64,000 per year at the end of each of the next six years
2. $304,000 (lump sum) now
3. $502,000 (lump sum) six years from now
A) $240,000
B) $98,133
C) $101,717
D) $299,192
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a. interrogative b. exclamatory c. persuasive d. imperative