To Calculate a Project's Net Present Value (NPV),the Project's Required

question 13

Multiple Choice

To calculate a project's net present value (NPV) ,the project's required rate of return is used to:

• A)compound cash flows to their future values.
• B)convert future cash flows to their equivalent values today.
• C)compute the weighted average cost of capital to discount the cash flows.
• D)convert the non-operating cash flows into operating cash flows.

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Definitions:

Quick Ratio

A liquidity measure that indicates a company's ability to cover its short-term liabilities with its most liquid assets.

Days Sales In Inventory

A financial metric indicating the average time it takes for a company to turn its inventory into sales, reflecting inventory management efficiency.

Days To Pay Payables

An accounting metric that calculates the average number of days it takes a company to pay its invoices from suppliers, indicating how effectively a company is managing its outgoing cash flow.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.