1. What is the effect on a firm's net working capital if a new project requires a $30,000 increase in inventory, a $10,000 increase in accounts receivable, a $35,000 expenditure on machinery, and a $20,000 increase in accounts payable?
2. Assume your firm has an unused machine that originally cost $75,000, has a book value of $20,000, and a market value of $25,000. Ignoring taxes, what is the opportunity cost of using this machine?
3. You have just borrowed $20,000, which you will repay in 10 equal annual payments. The bank's stated rate on its loans is 9%. Based on this information, how much principal will you repay in the 10th (i.e. the last) year of the loan?