Pepsi-Cola is planning on opening a subsidiary in India. The subsidiary will cost Rupees 1 billion; working capital needs of the subsidiary include an increase in inventories of Rupees 200 million, and increase in accounts payables to the tune of Rs. 300 million. The revenues from the subsidiary are estimated to be Rupees 800 million per year over a 5-year economic life. Depreciation expense after accounting for the savage value of Rs. 200 million will be Rupees 160 million/year. Total costs (fixed and variable costs together) will be Rupees 250 million/year. The plant will have a salvage value of Rupees 200 million (net of taxes) in the final year. Indian government imposes a 30% tax on earnings. 100% of the cash flows will be remitted to the parent. However, there will be a 10% withholding tax by the Indian Govt. Pepsi-Cola requires 14% return on new investments of this kind in developing countries. Exchange rate is expected to remain stable at Rs. 65/$26. The net investment cost ($) of this subsidiary is:

The owners of spokes bicycle shop worry that cash flow this winter may be insufficient to meet the current operating expenses. while they anticipate a surplus of cash inflow as warm weather approaches, they need funds now to meet the company's immediate obligations. the owners can best resolve cash flow concerns by obtaining financing.

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.