The operating cycle is the recurring transition of a firm's working capital from cash to inventories and inventories to receivables and back to cash

A firm has a projected EBIT of $20,000 for a new project. The funds needed for the project are $40,000. The firm can finance the project completely with debt at a pre-tax interest cost of 10%

Alternatively, the firm could finance the project with equity by selling stock at $5 per share. If there are 500,000 shares outstanding and the firm's tax rate is 40%, what is the EBIT-EPS indifference point? A) $254,000 B) $504,000 C) $40,000 D) $20,000 E) $500,000

Refer to the information above. The net change in operating income resulting from a decision to manufacture product A2 is:

A. $15,000 (increase). B. $15,000 (decrease). C. $5,000 (increase). D. $45,000 (increase).