When I ask if you would proceed with a project based on an investment criteria, you MUST state the reason you would accept/reject the project BASED ON THAT RULE, even if you would reject/accept the project for other reasons. Answer Questions 1. Ending long-term debt = $1,320 Beginning long-term debt = $970 Interest expense = $425 Calculate the cash flow to creditors. 2. Operating cash flow = $910,000 Cash flow from assets = $480,000 Cash flow to creditors = $310.000 Calculate the cash flow to stockholders 3. Ending common stock = $870 Beginning common stock = $1,100 Dividends = $92 Calculate the cash flow to stockholders. 4. Operating cas ow = $630,000 Decrease in net working capital = $33,000 Capital spending = $174.000 Calculate the cash flow from assets. 5. State which investment criteria is/are not closely related to net present value: Profitability index Payback period Internal rate of return 6. Initial investment ($800.000) Cash flow in year 1 = $250,000 Cash flow in year 2 = $365,000 Cash flow in year 3 = $555,000 Calculate the payback period (to 2 decimal places)