1. Compute the number of dollars that can be bought with 8 million of foreign currency units:
$1 = 7.2501 South African rand
$1,103,433.056
$8,000,000.00
$5,800,080.00
$9,103,200.00
2. A project is expected to increase inventory by $17,000, increase accounts payable by $10,000, and decrease accounts receivable by $1,000. What is the project’s cash flow from net working capital at time zero?
a. -$8,000
b. $8,000
c. $-6,000
d. $6,000