1. Rob has just received a check for $32,595. This is a return from an investment that he made 18 years ago. He was told that the return was the equivalent of 11% per year. How much was his original investment?
2. A firm currently has receivables of $800,000, inventory of $700,000, and accounts payable of $400,000, revenues of $6,500,000 and COGS of $3,250,000. The firm’s treasury manager would like to reduce the days’ inventory held by 5 days, solely through a reduction in inventory. What is the required change in inventory to hit this target?.
3. Anthony has been investing $1,000 at the end of each year for the past 15 years. How much has accumulated assuming he has earned 10.5% compounded annually on his investment?