1. Calculate projected net income. Sales $860,000, Variable Costs are 60% of sales, Fixed costs $195,000, Depreciation $86,000, Tax rate 35%
2. Why do you think the cash discount terms 2 per cent 10 days, net 30 days (2/10, net 30) is so prevalent?
3. What is the present value? (PV) of an investment that will pay $600 in one? year's time, and $600 every year after? that, when the interest rate is 5?%?