24 . The length of time between the sale of inventory and the collection of cash from receivables is called the : 25 . The length of time between the acquisition of inventory and its sale is called the : 28 . What is the value of a 20-year , zero-coupon bond with a face value of $ 1,000 when the market required rate of return is 9.6 percent , compounded semiannually ? 29 . Next year ' s annual dividend divided by the current stock price is called the : 32 . Jack ' s Construction Co . has 80,000 bonds outstanding that are selling at par value . Bonds with similar characteristics are yielding 8.6 percent . The company also has 4 million shares of common stock outstanding . The stock has a beta of 1.1 and sells for $ 40 a share . The U . S . Treasury bill is yielding 4 percent and the market risk premium is 8 percent . Jack ' s tax rate is 34 percent . What is Jack ' s weighted average cost of capital ? 34 . When computing the weighted average cost of capital , which of these are adjusted for taxes ? 37 . No matter how many forms of investment analysis you employ : 38 . Foamsoft sells customized boat shoes . Currently , it sells 16,850 pairs of shoes annually at an average price of $ 79 a pair . It is considering adding a lower-priced line of shoes which sell for $ 49 38 . Which statement concerning the net present value ( NPV ) of an investment or a financing project is correct ? 36 The CAPM has an advantage over DDM because the CAPM : 37 . For a firm to create value it must : 40 . Marshall ' s purchased a corner lot five years ago at a cost of $ 498,000 and then spent $ 63,500 on grading and drainage so the lot could be used for storing outdoor inventory . The lot was recently appraised at $ 610,000 . The company now wants to build a new retail store on the site . The building cost is estimated at $ 1.1 million . What amount should be used as the initial cash flow for this building project ? 42 . A proposed project costs $ 300 and has cash flows of $ 80 , $ 200 , $ 75 , and $ 90 for Years 1 to 4 , respectively . Because of its high risk , the project has been assigned a discount rate of 16 percent . In dollars , how much will this project return in today ’ s dollars for every $ 1 invested ? 45 . What is the net present value of a project that has an initial cash outflow of $ 7,670 and cash inflows of $ 1,280 in Year 1 , $ 6,980 in Year 3 , and $ 2,750 in Year 4 ? The discount rate is 12.5 percent .