If the Average Collection Period Is 73 Days, What Is

question 160

Multiple Choice

If the average collection period is 73 days, what is the accounts receivable turnover?

• A) 5 times
• B) 20 times
• C) 10 times
• D) 6 times

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Definitions:

IRR

The Internal Rate of Return is the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Mutually Exclusive

situations or events that cannot occur at the same time.

Internal Rate of Return

The Internal Rate of Return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.

Required Rate

The minimum return an investor expects to achieve by investing in a project, often used as a benchmark to evaluate financial investments.