Problem 1: Darlene wishes to accumulate $50,000 by the end of 10 years by making Equal annual end-of-the year deposits over the next 10 years. If Darlene Can earn 5 percent on her investments, how much must she deposit at the end of each year?
a. $3,975
b. $6,475
c. $5,000
d. $4,513
Problem 2: A corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are expected to change. Management expects cash to increase by $20,000, accounts receivable by $40,000, and inventories by $60,000. At the same time accounts payable will increase by $50,000, accruals by $10,000, and long-term debt by $100.000. The change in networking capital is:
a. an increase of $120,000
b. a decrease of $ 40,000
c. a decrease of $120,000
d. an increase of $ 60,000