Examlex

Solved

Why Is Liquidity Relevant

question 49

Essay

Why is liquidity relevant?


Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting.

Capital Rationing

A strategic financial approach where a company restricts its spending on new projects due to limited resources.

Net Present Value

A performance indicator for assessing an investment's profit, derived by taking away the current value of cash disbursements from the current value of cash incomes during a specific period.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

Related Questions