The answer here is ‘aging’.
I hope this can help.
Answer:
c) The current ratio
Explanation:
The current ratio is an example of a liquidity ratio.
Liquidity ratios measure a company's ability to meet its short term obligations.
Current ratio = curernt assets / current liabilities
Return on assets is a profitability ratio. It measures return on investment
The other ratios are coverage ratios. They measure the ability of the firm to covert its debts payments
The involvement factors would be the price of the computer, the style, the model, and the things you could do with the computer.
Answer:
The NPV = $1578.185602 rounded off to $1578.19
As the NPV is positive, the project should be accepted.
Explanation:
The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project. If the NPV is positive, we should proceed with the project and vice versa.
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial Cost
Where,
- CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on.
- r is the required rate of return
NPV = 3200 / (1+0.17) + 3200 (1+0.17)^2 + 3200 (1+0.17)^3 +
3200 (1+0.17)^4 + 5700 (1+0.17)^5 - 9800
NPV = $1578.185602 rounded off to $1578.19
