Answer length for each question: one-half to one-page, single-spaced. For Q1 and Q2 only
1. Why is Amazon's cash cycle so much shorter than that of competitor Barnes & Noble? How does this comparison affect financial management decisions of other retailers?
2. How does Boeing achieve a cash cycle of negative 100 days?
Solve the following using The Rule of 72:
3. You expect to earn 8% per year on your investment. If you invest $3000 today, how much will your investment be worth in 9 years ?
4. You want to have $40,000 available to finance a trip around the world in 12 years. You estimate that you can earn 12% on your investment. How much do you need to deposit today to meet your goal?
5. A new Grady White fishing boat cost $5000 in 1979. Today, the very same boat costs around $40,000. Estimate the average annual inflation rate, using the Rule of 72.
6. You invest $2000 today and expect ot earn 9% per year. how many years will it take for your investment to grow to $32,000?