Problem set 1.xlsx - Problem Set 1: Intro into Managerial...

Problem Set 1: Intro into Managerial Finance
The Role of Managerial Finance: P1-1; P1-3; P1-4; P1-5
Chapter 1 Page 52
P1-1
Table 1.1
a.
b.
c. Southwest Development Company is a corporation.
Liability comparisons: Merideth Harper has invested $25,000 in
Southwest Development Company. The firm has recently declared
bankruptcy and has $60,000 in unpaid debts. Explain the nature of
payments, if any, by Merideth in each of the following situations.
Textbook
Examples
P1-3
Example 1.4
Cash flows: It is typical for Jane to plan, monitor, and assess her
financial position using cash flows over a given period, typically a
month. Jane has a savings account, and her bank loans money at
6% per year while it offers short-term investment rates of 5%.
Jane’s cash flows during August were as follows:
b. Determine the net cash flow for the month of August. Auto payment c. If there is a shortage, what are a few options open to Jane? Gas

P1-4
Example 1.2
a. The marginal benefits of the proposed new robotics.
b. The marginal costs of the proposed new robotics. c. The net benefit of the proposed new robotics.