1. Heinlein Inc is considering investing in a project with a cost of $100k. If the project is expected to produce cash flows of $50 in year 1, 175 in year 2, and 215 in year 3, what is the payback period.
2. ABC Company writes 46 checks a day for an average amount of $415 each. These checks generally clear the bank in 2 days. In addition, the firm generally receives an average of $23,879 a day in checks that are deposited immediately. Deposited funds are available in 2 days. What is the firm's net float?