Reference no: EM132177981
1) Net present value can be very helpful in deciding among the purchasing of capital equipment.
True /False
2) An Organization that is financially leveraged would have:
A lower operating margin
A high current ratio
A high debt to assets ratio
A positive net margin
3) Which is a measure of liquidity?
Asset turnover
Debt to assets ratio
Acid or quick ratio
Operating Margin
4) Appropriate liquidity allows a firm to:
Meet its short-term financial obligations and carry out planned financial transactions
Quickly sell almost all of its assets if threatened with bankruptcy
Minimize the amount of interest it can earn on its invested monies
Understand the amount of debt needed to fund long-term projects
5) All of the following are major problems with net present value except:
Accurately determining future cash flows
Accounting for non-financial, mission based reasons T
he finite amount of available capital
Determining an accurate discount rate
6) A key aspect of net present value is?
Unequal cash flows
Time value of money
Accounting for depreciation
Salvage values
7) In determining capital allocation, a leader should use just one of the three financial analyses methods discussed.
True /False