Your Company Has Net Sales Revenue of $36 Million During

question 118

Multiple Choice

Your company has net sales revenue of $36 million during the year.At the beginning of the year,fixed assets are $8 million.At the end of the year,fixed assets are $10 million.What is the fixed asset turnover ratio?

• A)4.5
• B)4.0
• C)2.0
• D)3.6

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Definitions:

Interest Rate Parity

Interest rate parity is an economic theory that suggests the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Rate

The predetermined rate at which two parties will exchange currencies on a future date, agreeing upon it in the present.

Spot Rate

The present cost at which a specific asset like a commodity, currency, or security is available for purchase or sale with immediate delivery.

Net Present Value

A financial metric that calculates the value of a project or investment by discounting future cash flows back to their present value to assess profitability and risk.