1. A homeowner takes a 30-year fixed-rate mortgage for $150,000 at 7.9 percent. After eleven years, the homeowner sells the house and pays off the remaining principal. How much is the principal payment?

2. Tick the factors that financial manager should include when computing the incremental free cash flows of an investment decision. Project externalities Opportunity costs Sunk costs Financing costs

3. Weisbro and Sons purchases its inventory one quarter prior to the quarter of sale. The purchase price is 57 percent of the sales price. The accounts payable period is 60 days. The accounts payable balance at the beginning of Quarter 1 is $27,500. Sales for Quarters 1 through 4 are expected to be $46,400, $51,900, $57,800, and $62,500, respectively. What is the amount of the expected disbursements for Quarter 3? Assume a 360-day year.

$29,202

$28,800

$30,451

$33,839

$31,407