The different elements of working capital are <u>current current asset and current liabilities</u>. The management of a business entity might take <u>ratio analysis</u> to reduce the cycle.
Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.
<h3>What is working capital management?</h3>
Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.
Therefore, learn more about working capital management: brainly.com/question/28287025
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Answer:
a, b
Explanation:
It is important to note that a lessor's goal is to make a profit, thus he would be more concerned about knowing what is the value realized after subtracting the lease payments from his income taxes and any maintenance expenses that must be incurred as per the lease agreement.
In order to be cost efficient, he might as well determine the net cash outlay of the lease agreement.
Answer:
$172.25
Explanation:
initial outlay for the project = -$350
cash flow years 1-5 = [($300 - $135 - $70) x (1 - 36%)] + $70 (depreciation expense) = $60.80 + $70 = $130.80
using an excel spreadsheet and the NPV function, we can calculate the project's NPV with an 8% discount rate:
=NPV(8%,130.80,130.80,130.80,130.80,130.80) - $350 = $522.25 - $350 = $172.25
we can also do it manually:
NPV = -$350 + $130.80/1.08 + $130.80/1.08² + $130.80/1.08³ + $130.80/1.08⁴ + $130.80/1.08⁵ = $172.25
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