14-

Bi-Lo Traders is considering a project that will produce sales of $35,600 and have costs of $20,900. Taxes will be $3,700 and the depreciation expense will be $2,050. An initial cash outlay of $1,700 is required for net working capital. What is the project's operating cash flow?

$13,050

$7,250

$9,300

$8,950

$11,000

9-

POD has a project with the following cash flows:

Year	Cash Flows
0	?$275,000
1	145,800
2	163,300
3	128,400

The required return is 8.6 percent. What is the profitability index for this project?

1.130

1.243

1.356

.922

.737

10-

The step in the capital budgeting process that typically takes the least time is the

postcompletion audit step

evaluation step

monitoring step

implementation step