You are in charge of one division of Yeti Surplus Inc Your ...

[charchew]

You are in charge of one division of Yeti Surplus Inc Your division is subject to capital rationing.
 
  Your division has 4 indivisible projects available, detailed as follows:
  Project Initial Outlay IRR NPV
  1 2 million 18 2,500,000
  2 1 million 15 950,000
  3 1 million 10 600,000
  4 3 million 9 2,000,000
  If you must select projects subject to a budget constraint of 5 million dollars, which set of projects
  should be accepted so as to maximize firm value?
  A) Projects 1 and 4 B) Projects 2, 3 and 4
  C) Project 1 only D) Projects 1, 2 and 3

Question 2

Use the percent of sales method of preparing pro forma financial statements to determine the
  projection for next year's inventory.
 
  Make the following assumptions: current year's sales are
  27,800,000; current year's cost of goods sold is 17,528,000; sales are expected to rise by 30. The
  firm's investment in inventory in the current year is 5,890,200. What is the projection for next
  year's inventory?
  A) 5,845,500 B) 7,657,260 C) 4,526,600 D) 6,981,250

[macagnavarro]

Answer to Question 1

A

Answer to Question 2

B