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Comparing This Year's Results to Last Year's, Hector Discovered That

question 11

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Comparing this year's results to last year's, Hector discovered that his firm's current ratio improved from 1.5 to 2.0. Which of the following has happened?


Definitions:

Investment Projects

Initiatives or plans undertaken by an organization or individual involving the allocation of resources with the expectation of generating future returns.

Salvage Value

The estimated residual value of an asset at the end of its useful life, which can be recovered through disposal or sale.

Pretax Return

Pretax Return refers to the earnings of a company before the deduction of taxes, often used to analyze profitability from core operations.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.

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