1. How are working capital items forecasted? Why are accounts receivable typically forecasted as a percentage of revenue and accounts payable, and inventories as percentages of the cost of goods sold? Explain.
2. Explain the importance of understanding that cash flow forecasts in an NPV analysis are expected values.
3. You received 146000$. You want to invest it and eventually retire. You want to retire in 29 years and have 491,000$. What annual average interest rate would you have to earn on your money to reach that goal?