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Generally, an increase in current assets relative to total assets: (Points : 5)

ID: 2757317 • Letter: G

Question

Generally, an increase in current assets relative to total assets: (Points : 5)

decreases returns and risk.

increases returns and risk..

increases returns and decreases risk.

has no effect on return or risk.

Question 9.9. If the NPV of a project is positive, the IRR is __________ the cost of capital. (Points : 5)

greater than

less than

equal to

riskier than

Question 10.10. The amount of time it takes from the cash outlay for a purchase of raw materials to the cash inflow for the sale of a finished product is called the: (Points : 5)

accounts receivable.

days inventory outstanding.

cash conversion cycle.

liquidity ratio.

       $417
       $462
       $517
       $562

What is the present value of $100 received in one year, $200 received in two years, and $300 received in three years if the opportunity cost is 12%? (Points : 5)

Explanation / Answer

Generally, an increase in current assets relative to total assets: has no effect on return or risk.

If the NPV of a project is positive, the IRR is __________ the cost of capital. Greater than

The amount of time it takes from the cash outlay for a purchase of raw materials to the cash inflow for the sale of a finished product is called the: cash conversion cycle.

Present value= 100/(1.12)^1+200/(1.12)^2+300/(1.12)^3= 462