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Author Question: In the context of managing working capital, the hedging principle refers to which of the following? ... (Read 115 times)

mckennatimberlake

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In the context of managing working capital, the hedging principle refers to which of the following?
 
  A) matching the maturity of the source of financing to the cash flow generating characteristics of
  the asset being financed
  B) speculation regarding the direction of short-term interest rates
  C) protecting the firm against the risk of rising interest rates
  D) the usage of interest rate swaps

Question 2

Dave Company, Inc. is considering purchasing a new grinding machine with a useful life of five years. The
  initial outlay for the machine is 165,000. The expected cash inflows are as follows:
 
  Year After-tax Expected Cash Flow
  1 15,000
  2 35,000
  3 70,000
  4 90,000
  5 70,000
  Given that the firm has a 10 required rate of return, what is the NPV?


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smrerig

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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