SHOW YOUR WORK in order to get part credit if your answer is wrong on problems
Question 1: Whats the PV of $5000 received 5 years from now; your personal investment track record is 10%
Question 2: Whats the annual payment required on a 3 year $20,000 auto loan which has a 15% stated interest rate
Question 3: Whats the net present value of a project which requires $100,000 investment and generates $26,000/yr in financial benefits; your compamies discount rate is 10%. The project will last 4 years
Question 4: What does "capital structure" refer to and why are decisions about it important to a firms CFO
Question 5: What is the current ratio for a firm with the following balance sheet .
| Assets |
|
Liabilities & Owners Equity |
|
|
|
|
| cash |
1000 |
a/payable |
5000 |
| a/r |
2000 |
mortgage payable |
5000 |
| inventory |
3000 |
|
|
|
|
|
|
| equipment |
4000 |
owners equity |
10000 |
| bldg |
10000 |
|
|