FIN 3715 : Exam3 Song08
Document Summary
Dollar diamond is considering a project which will require addit onal inventory of ,000 and will also increase accounts payable by ,000 as suppliers are willing to fin mce part of these purchases. Accounts receivable ure currently ,000 and are expected to increase by 8 percent if this prcject is accepted. What is the discounted payback period if the required rate of return is 15 percent9: 2. 36 years, 2. 55 years, 2. 62 years, 2. 45 years, never. Tht: facility is located on a piece of land that originally cost ,000. The facility itself cost $ 700,000 to build. As of now, the book value of the land and the facility are ,000 and ,000, respectively janson"s auto pstrts received a bid of. ,000 for the land and facility last week. > ;ven though they were told that it is a reasonable offer in today"s market.
