Question

8. Suppose that Martin Metal Products changes its policy and starts paying all of its suppliers within 60 days rather than the 30 days that it currently uses. Which one of the following will result from this change?

Group of answer choices

Increase in receivables period

Increase in inventory period

Decrease in cash cycle

Increase in operating cycle

Decrease in accounts payable period

9.

You expect to receive $12,000 at graduation one year from now. You plan on investing it at 8 percent until you have $100,000. How long will you wait from now?

Group of answer choices

27.47 years

27.51 years

27.55 years

28.47 years

28.55 years

10.

You are scheduled to receive $7,500 in three years. When you receive it, you will invest it for eight more years at 7.5 percent per year. How much will you have in eleven years?

Group of answer choices

$13,376.08

$14,428.09

$15,110.24

$16,113.33

$16,617.07

Answer 1

Ans 8	Correct answer is option
	Decrease in cash cycle
Ans 9	put in calculator
	FV	100000
	PV	-12,000
	I	8%
	PMT	0
	compute N	27.55
	Therefore answer= 27.55+1 =
	Ans =	28.55	year
Ans 10	Future value =	13376.08
	7,500*(1+7.5%)^8
	Ans=		13376.08