If a Firm Has a Cash Cycle of 18 Days

question 109

Multiple Choice

If a firm has a cash cycle of 18 days and an operating cycle of 29 days, what is its payables turnover?

• A) 11
• B) 18
• C) 29
• D) 33.18

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Definitions:

Sensitivity/Scenario Analysis

Techniques used in financial modeling to examine how different values of an input variable can impact a project or investment's outcome under various scenarios.

Project NPV

This refers to the net present value specifically calculated for a given project, representing the difference between the project's cash inflows and outflows discounted at a particular rate over time.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.