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1. Which of the following methods does not consider the investment’s profitabili

ID: 2725786 • Letter: 1

Question

1. Which of the following methods does not consider the investment’s profitability?

Select one:

a. Payback

b. ARR

c. NPV

d. IRR

2. Assume a company has a current ratio of 2.0. List two examples of transactions that could cause the current ratio to increase. Also list two examples of transactions that could cause the current ratio to decrease.

3.

Cash + short-term investments + net current receivables) divided by current liabilities is the formula for

Select one:

a. return on assets

b. current ratio

c. working capital ratio

d. acid-test ratio

Explanation / Answer

1 a. Payback

because payback is not concerned on the returns , it just consider the time take to get investment back.