Use the Following Information to Answer the Question(s) Below

question 33

Multiple Choice

Use the following information to answer the question(s) below.
Nielson Motors is considering an opportunity that requires an investment of $1,000,000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now.
-If the appropriate interest rate is 15%,then Nielson Motors should:

• A) Invest in this opportunity since the NPV is positive.
• B) Do Not Invest in this opportunity since the NPV is positive.
• C) Invest in this opportunity since the NPV is negative.
• D) Do Not Invest in this opportunity since the NPV is negative.

Realize the need for information dissemination meetings for significant changes.

Understand the psychological and social needs fulfilled by meetings.

Recognize the importance of circulating a specific agenda beforehand.

Know the role of minutes and proper documentation in disseminating meeting information.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by dividing total net credit sales by the average accounts receivable.

Accounts Receivable

Funds that customers are required to pay to a company for products or services that have been provided but not yet compensated for.

Net Credit Sales

The total revenue from sales made on credit after subtracting returns and allowances.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a specific period.