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Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? Profitability index (PI) Internal Rate of Return (IRR) Payback Period (PBP)   Ratio   2020   2019   2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25

Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? Profitability index (PI) Internal Rate of Return (IRR) Payback Period (PBP)   Ratio   2020   2019   2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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  • Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below?
  1. Profitability index (PI)
  2. Internal Rate of Return (IRR)
  • Payback Period (PBP)

 

Ratio

 

2020

 

2019

 

2018

2020-

Industry Average

Inventory Turnover

62.65

42.42

32.25

53.25

Receivables in days

94

63

50

115

Debt to Equity

0.75

0.85

0.90

0.88

Quick Ratio

1.028

1.03

1.029

1.031

Current Ratio

1.33

1.21

1.15

1.25

 

Q 2. Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? i. Profitability index (PI) 1. Internal Rate of Return (IRR) ii. Payback Period (PBP) 2020- Industry Average 53.25 Ratio 2020 2019 2018 Inventory Turnover Receivables in days Debt to Equity Quick Ratio 62.65 42.42 32.25 94 63 50 115 0.75 0.85 0.90 0.88 1.028 1.03 1.029 1.031
Transcribed Image Text:Q 2. Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? i. Profitability index (PI) 1. Internal Rate of Return (IRR) ii. Payback Period (PBP) 2020- Industry Average 53.25 Ratio 2020 2019 2018 Inventory Turnover Receivables in days Debt to Equity Quick Ratio 62.65 42.42 32.25 94 63 50 115 0.75 0.85 0.90 0.88 1.028 1.03 1.029 1.031
Q 2. Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? i. Profitability index (PI) 1. Internal Rate of Return (IRR) ii. Payback Period (PBP) 2020- Industry Average 53.25 Ratio 2020 2019 2018 Inventory Turnover Receivables in days Debt to Equity Quick Ratio 62.65 42.42 32.25 94 63 50 115 0.75 0.85 0.90 0.88 1.028 1.03 1.029 1.031
Transcribed Image Text:Q 2. Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? i. Profitability index (PI) 1. Internal Rate of Return (IRR) ii. Payback Period (PBP) 2020- Industry Average 53.25 Ratio 2020 2019 2018 Inventory Turnover Receivables in days Debt to Equity Quick Ratio 62.65 42.42 32.25 94 63 50 115 0.75 0.85 0.90 0.88 1.028 1.03 1.029 1.031
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