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A firm is considering investing in a project that requires an initial investment of $200.000...

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Accounting

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A firm is considering investing in a project that requires an initial investment of $200.000 and is expected to produce cash inflows of $60.000, $80.000, and $100,000 in first, secondand third years. There will be no residual value. The firm applies a discount rate of 10%- Discount factors for Year 1, 2 and 3 are 0.909, 0.826, and 0.751 respectively. Required: 1) Calculate the NPV of the project.- 11) Explain the meaning of NPV and its advantages as an investment evaluation method compared with the Accounting Rate of Return and Payback methods. An accountant has calculated the following ratios for his company for the last three years. (Remember: To convert turnovers into time periods, divide 365 days by the turnover.) 2018 2019 20204 Accounts receivable turnover 74 84 Inventory turnover 34 3.5 Accounts payable turnover 3.54 94- 342 Required: 1) Calculate the Operating Cash Cycle time for each of the three years. 11) Comment on the significance of the Operating Cash Cycle for the management

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