1. You have an opportunity to make an investment today that will provide the following cash flows:
Year 1 $8,000
Year 2 $18,000
Year 3 $12,000
Year 4 $4,000
With a required rate of return of 15%, what is the maximum investment you would be willing to make in this project?
2. Which of the following best describes an operating budget?
A. It helps forecast a company's cash inflow and outflow for a specific time period.
B. It examines the expected assets, liabilities, and stockholders' equity of a business.
C. It includes accounting items in the balance sheet.
D. It deals with the costs for merchandise or services produced.