Hurkin Manufacturing Company pays accounts payable on the tenth day after purchase. The average collection period is 30 days, and the average age of inventory is 40 days. The firm currently has annual sales of about $18 million and purchases of $14 million. The firm is considering a plan that would stretch its accounts payable by 20 days. If the firm pays 12% per year for its resource investment, what annual savings can it realize by this plan? Assume a 360- day year.

HS Shipping wants to expand as soon as it can save $112 million. Towards that goal, the firm started saving three years ago and currently has $38.2 million saved. Starting today, the firm will add $15,000 a month to this savings account. The rate of return is 7.1 percent, compounded monthly. How long will it be from now before the company can expand?

A company expects a constant FCF of $240 million per yearforever. If the WACC is 12%, what is the value of operations?($2,000 million)

We are examining a new project. We expect to sell 8,800 units per year at $191 net cash flow apiece (including CCA) for the next 16 years. In other words, the annual operating cash flow is projected to be $191 × 8,800 = $1,680,800. The relevant discount rate is 10%, and the initial investment required is $5,590,000. Suppose you think it is likely that expected sales will be revised upward to 9,550 units if the first year is a success a. If success and failure are equally likely, what is the NPV of the project? Consider the possibility of abandonment in answering. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)   NPV $   b. After the first year, the project can be dismantled and sold for $2,846,000. What is the value of the option to abandon? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)   The value…

Assume that an investment, with a single initial cost of $1,000 and a yield of $50 monthly for 10 years, had a 7% IRR in the 60th month and a 7.2% IRR five months later. The IRR can be 6.8% in the 62nd month. I don't now how to solve this problem can you provide an explanation on how to solve this problem?

A company wants to deposit extra money to cover its increased maintenance costs for the next 13 years. How much should they deposit now if they expect costs to increase by $4,563 per year, starting from year 2, and their MARR is 9%?

Suppose you have an account that will grow to $253,000.00 in 25 years. It grows at 7.5% annual interest, compounded monthly, under the current investment strategy. The owner of the account, however, wants it to have $368,000.00 after 25 years. How much additional monthly contribution should they make to meet their goal?

How much can a construction company afford to spend now on new equipment in lieu of spending300,000 one year from now and 200,000 three years from now, if the company uses an interest rateof 12% per year?

The Milton Company currently purchases an average of $18,000 per day in raw materials on credit terms of "net 25." The company expects sales to increase substantially next year and anticipates that its raw material purchases will increase to an average of $22,000 per day. Milton feels that it may need to finance part of this sales expansion by stretching accounts payable. Round your answers to the nearest dollar. Assuming that Milton currently waits until the end of the credit period to pay its raw material suppliers, what is its current level of trade credit? $    If Milton stretches its accounts payable an extra 5 days beyond the due date next year, how much additional short-term funds (that is, trade credit) will be generated? $    solution is incorrect

The optical products division of Panasonic is planning a $3.5 million building expansion for manufacturing its powerful Lumix DMC digital zoom camera. If the company uses an interest rate of 16% per year, compounded quarterly for all new investments, what is the uniform amount per quarter the company must make in order to recover its investment in 3 years?