Reference no: EM132921020
Problem 1: Calculate the net debt of the company based on the information below:
Short-term interest bearing debt 3,000
Long-term interest bearing debt 25,000
Non-interest bearing liabilities 1,500
Cash and equivalents 1,200
(a) 26,800
(b) 28,000
(c) 29,500
(d) 28,300
Problem 2: What is the net present value of the project based on the information below?
Initial investment (Year 0): 20,000
Year 1 cash flow: 5,000
Year 2 cash flow: 8,000
Year 3 cash flow:12,000
Required rate of return: 8%
(a) $5,000
(b) $1,014
(c) $3,904
(d) $2,576
Problem 3: A firm generated annual revenue of $75,000 and has accounts payable of $3260. The gross profit margin is 23.2%. The payable days estimated from the data above is closest to ______.
(a) 21
(b) 13
(c) 25
(d) 39