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question 71

Multiple Choice

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Needsalift,Inc.APRs
Needsalift,Inc.has $10 million in funds to distribute to its unsecured creditors.Two sets of possible claims are presented below.

-For Case I,how much will the bank receive for its notes payable claim?

• A) $3.75 million
• B) $4.29 million
• C) $6.00 million
• D) nothing.

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Definitions:

Economic Order Quantity

A method of inventory control that places new orders when inventory levels fall to predetermined points.

Critical Path

The longest pathway in a CPM/PERT network.

Liquidity Ratios

Financial metrics used to evaluate a company's ability to pay off its short-term liabilities with its liquid assets.

Current Assets

Financial assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.