1. B&B expects sales of $530, $600, $720, and $790 for the months of April through July, respectively. The firm collects 23 percent of sales in the month of sale, 51 percent in the month following the month of sale, and 24 percent in the second month following the month of sale. The remaining 2 percent of sales is never collected. How much money does the firm expect to collect in the month of July?
$790.00
$692.90
$657.40
$598.72
$714.60
2. A company is considering a project that has an up-front cost paid today. the project will generate positive cash flows of $65,000 a year at the end of each for the next 6 years. the project's NPV is $80,000 and the company's return on the project is 24%. what is the project's payback?
a) 1.79
b) 3.69
c) 4.91
d) 2.88
e) 2.27