1. Jerry is considering to purchase a new machine to replace the existing machine. The new machine costs $120,000 and an installation costs of $1,500 will be required. A buyer is currently willing to purchase the existing machine at $21,000. A disposal fee of $1,000 will be needed. The change in the net working capital is $4,500. Calculate the initial investment of this project."

2. Accounts payable management is management by the firm of the time that elapses between

		Its purchase of raw materials and its mailing payment to the supplier
		Its sale of raw materials and its mailing payment to the supplier
		Its purchase of raw materials and receipt of payment from the supplier
		Its sale of raw materials and receipt of payment from the supplier

3. One can arrive at the value of a stock through various methods. Which of these is NOT one such way of doing so?

		The Capital Asset Pricing Model (CAPM)
		Dividend Discount Model (present value of all the future dividends)
		The Zero Growth Model
		The Constant Growth Mode

4. Adam has a company that uses 350,000 of units of a component for the production line per year. The ordering cost of the component is $24 per order and the carrying cost is $10 per unit per year. Supposed the company orders 1,000 units per order. What is the annual carrying cost?