Refer to the Table Below,which Shows the Results of Payback,net

question 42

Multiple Choice

Refer to the table below,which shows the results of payback,net present value,and internal rate of return analysis of four projects.Which is preferred by the internal rate of return criterion?

• A)A
• B)B
• C)C

Understand cash flow changes from changes in accounts receivable, inventory, and accounts payable.

Calculate net income from various financial metrics including tax rate, turnover ratios, and operating expenses.

Analyze a firm's liquidity and operational efficiency through calculation of cash accounts and turnover ratios.

Evaluate a firm's capital structure and compute potential asset acquisitions or liabilities through financial data.

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Definitions:

Capital Balances

The amounts shown in a company’s books representing the capital owned by partners or shareholders.

Profit and Loss

A financial statement, also known as an income statement, that provides a summary of a company's revenues, expenses, and profits/losses over a given period of time.

Partnership

A formally established way of running a business by two or more participants who equally handle the administration and profit-sharing.

Amount Debited

The total sum that has been recorded on the debit side of a company's accounts, reflecting an increase in assets or expenses, or a decrease in liabilities or equity.