Carter’s Gym Supply currently has an operating cycle of 74.68 days. The company has a goal to increase its inventory turnover from 8.52 times to 9.74 times. What will the company’s new operating cycle be if it can achieve this goal? Assume 365 days per year.

A project has cash flows of −$129,000, $62,400, $54,800, and $41,800 for Years 0 to 3, respectively. The required rate of return is 12 percent. Based on the internal rate of return of _____ percent for this project, you should _____ the project.

Drinkable Water Systems is analyzing a project with projected cash flows of $127,400, $209,300, and –$46,000 for Years 1 to 3, respectively. The project costs $251,000 and has been assigned a discount rate of 12.5 percent. Should this project be accepted based on the discounting approach to the modified internal rate of return? Why or why not?

You purchased 550 shares of Barden Enterprises stock for $58.22 per share at the beginning of the year. The stock is currently priced at $60.27 per share. What is your dividend yield if you received total dividends of $1,012 over the year?

Overland needs to maintain 21 percent of its sales in net working capital. Currently, the store is considering a four-year project that will increase sales from its current level of $349,000 to $408,000 the first year and to $414,000 per year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?

Scott is considering a project that will produce cash inflows of $2,900 per year for 3 years. The required rate of return is 15.4 percent and the initial cost is $6,800. What is the discounted payback period?

What is the expected return on a portfolio that is equally weighted between Stocks M and N given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock M Stock N Boom .13 .18 −.14 Normal .82 .06 .06 Recession .05 −.14 .18

What are the arithmetic and geometric average returns for a stock with annual returns of 21 percent, 9 percent, −2 percent, and 13 percent?

A 5-year project requires a $20,000 investment in machinery that will be depreciated on a straight-line basis to a value of $0 over its 5-year life. The project will have net income of $6,000 per year and operating cash inflows of $7,500 per year. What is the payback period?

You own a portfolio with the following expected returns given the various states of the economy. What is the overall portfolio expected return? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .11 .110 Normal .68 .045 Bust .21 −.045