Question

Over the past year, a fim decreased its current assets and increased its current abies As a result, the firm's networking capital had to increase had to decrease remained constant could have either increased decreased, or remained constant was unaffected as the changes occurred in the firm's current accounts QUESTIONS A local magazine is offering a 55,000 grand prize to one lucky winner. The prize will be paid in five annual payments of $1.000 each, starting one year after the drawing How much would this prize be worth to you if you can earn 8 percent on your money? $4,823 45 54,622 88 $3,992 71 $4,312.13 53,312.13 QUESTION 10 Bob's Kennels spent 5130,000 to refurbish is current facility. The firm borrowed 70 percent of the refurbishment cost at 45 percent interest for five years What is the amount of each monthly payment? O $1,985 25 51.44454 $2,423.59 $1,696,51 51,895.32 QUESTION 11

Answer 1

rate positively ..

	Ans 8	correct answer is option
		Had to decrease
		Net working capitla = Current asset - current liability. Therefore it will decreaes.
	Ans 9	correct answer is option
		i	ii	iii=i*ii
	year	Cash flow	PVIF @ 8%	Present value
	1	1000	0.9259	925.93
	2	1000	0.8573	857.34
	3	1000	0.7938	793.83
	4	1000	0.7350	735.03
	5	1000	0.6806	680.58
	Total			3,992.71
	Therefore answer =		3,992.71
	Ans 10
		We have to use financal calculator to solve this
		Put in calculator
		FV		0
		PV	130000*70%	-91000
		I	4.5%/12	0.38%
		N	5*12	60
		Compute PMT		$1,696.51
		Ans =		$1,696.51