Data for Flat Panel Ltd A) 225
B) 1

question 33

Multiple Choice

Data for Flat Panel Ltd. for the year ended December 31, 2020, are as follows:
$\begin{array} { l r } \text { Sales revenue } & \$ 130,000 \\\text { Cost of goods sold } & 90,000 \\\text { Beginning inventory } & 35,000 \\\text { Ending inventory } & 40,000\end{array}$

• A) 2.25
• B) 1.07
• C) 2.40
• D) 3.47

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Definitions:

Net Present Value

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

Profitability Index

A capital budgeting tool used to measure the relative profitability of an investment, calculated by dividing the present value of future cash flows by the initial investment cost.

Accounting Rate

The accounting rate, or rate of return, measures the profitability of investments or projects, expressed as a percentage.

Discounted Cash Flows

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for time value of money.