MonthJanFebMarTotal funds requirements$4,000,000$3,000,000$3,500,000Apr$3,500,000May$3,500,000Jun$6,000,000Jul$3,500,000Aug$3,500,000Sep$3,500,000Oct$4,000,000Nov$5,000,000Dec$5,000,000Given that short-term funds cost 6% annually and that long-term funds cost 8%annually, calculate the total cost of each of the following strategies:Note: Copy the above table and show all necessary workings. Zero marks will beawarded if there are no workings.(a) An aggressive funding strategy.(b)A conservative funding strategy.(c)(3 marks)4(2 marks)Given the firm's management is currently focusing on increasing returns,should the firm adopt the Aggressive financing strategy or Conservativefinancing strategy? Discuss the risk(s) related with Aggressive strategy.Provide justification for your answer.(3 marks)

(c) Decision:Considering the firm's focus on increasing returns, it should adopt the aggressive…

Answered: Month Jan Feb Mar Total funds…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 11MC: Dixon Construction Materials has collected this information: Based on this Information, what is the...

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Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $180,000. John Shell, president of the company, has set a maximum payback period of 4 years. The cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project. b. Which project is acceptable based on payback period? C a. The payback period of project A is years. (Round to two decimal places.) The payback period of project B is years. (Round to two decimal places.) b. Which project is acceptable based on payback period? (Select the best answer below.) O Project B would be preferred over project A because the larger cash flows are in the early years of the project. O Project A would be preferred over project B because the larger cash flows are in the later years of the project.
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