Which of the Following Will Increase a Firm's Need for Additional

question 86

Multiple Choice

Which of the following will increase a firm's need for additional funds?

• A) An increase in the firm's average collection period
• B) An increase in the retention ratio
• C) A decrease in sales growth
• D) An increase in accrued wages

Understand the preference rule for ranking projects using the profitability index.

Learn about the components included in the nominal cost of capital, including expected inflation.

Understand how the internal rate of return (IRR) functions as a decision criterion in investment projects.

Define and calculate the payback period for an investment.

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Definitions:

Psychoanalyzed

Subjected to psychoanalysis, a technique used in psychotherapy to explore unconscious motivations and conflicts influencing behavior.

Antagonistic

Characterized by opposition or hostility towards something or someone.

Inferiority Feelings

Emotions or sensations of being lesser or inadequate compared to others, which can impact self-esteem and motivate compensatory actions or overcompensations.

Genetically Determined

Something that is genetically determined is influenced or controlled by genes and inherited from one's parents.