What is capital investment analysis

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1. What is capital investment analysis? Why are capital investment decisions so important to businesses?

2. A company has net income of $182,000, a profit margin of 9.90 percent, and an accounts receivable balance of $106,740. Assuming 62 percent of sales are on credit, what is the company's days' sales in receivables?

3. ADE Inc, has an ROE of 18.9 percent, a profit margain of 3.5 percent and a total assests turnover ratio of 2.7 times. its peer group has an ROE of 18.9 percent but has outperformed Becker with a profit margin of 4.2 percent and a total assets turnover ratio of 3 times. Explain how ADE managed to achive the same level of profitability as reflected by the ROE.

Reference no: EM131865526

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