What is being computed here?

	Year
	0	1	2	3
Operating cash flow		$170,000	$170,000	$170,000
Change in NWC	-$24,000
Capital spending	-6,000
What is this total called?	-$30,000	$170,000	$170,000	$170,000

2.What types of investments should a company choose based on the SML (In regards to risk and return)

3.True or false: the capital structure that maximizes the value of the firm is also the one that minimizes the cost of capital.

4.

Pick one: Flexible short-term financial policy or restrictive short-term financial policy.

Explain what actions are involved with this policy. Also, mention if this policy would be most appropriate if carrying costs are (higher/lower) than shortage costs.

(Note: Carrying costs are for example costs of holding inventory and shortage costs are costs of not having enough inventory)