
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:QUESTION 4
At the beginning of the year, a firm has current assets of $324 and current liabilities of $228. At the end of the year, the current
assets are $485 and the current liabilities are $268. What is the change in net working capital?
000
$121
$0
-$121
$201
$161
QUESTION 5
Your firm has net income of $343 on total sales of $1,360. Costs are $750 and depreciation is $120. The tax rate is 30 percent. The
firm does not have interest expenses. What is the operating cash flow?
$833
$463
$610
$343
$490
QUESTION 6
Seaborn Co. has identified an investment project with the following cash flows.
Cash Flow
$950
1,050
1,320
1,200
Year
1
2
3
4
of these cash flows?
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