Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? Profitability index (PI) Internal Rate of Return (IRR) Payback Period (PBP) Ratio 2020 2019 2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25
Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? Profitability index (PI) Internal Rate of Return (IRR) Payback Period (PBP) Ratio 2020 2019 2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter7: Corporate Valuation And Stock Valuation
Section: Chapter Questions
Problem 25SP: Start with the partial model in the file Ch07 P25 Build a Model.xlsx on the textbook’s Web site....
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Question
- Suppose an investment has conventional cash flows with positive
NPV . How would it impact your decision based on capital budgeting techniques mentioned below?
- Profitability index (PI)
Internal Rate of Return (IRR)
- Payback Period (PBP)
Ratio |
2020 |
2019 |
2018 |
2020- Industry Average |
Inventory Turnover |
62.65 |
42.42 |
32.25 |
53.25 |
Receivables in days |
94 |
63 |
50 |
115 |
Debt to Equity |
0.75 |
0.85 |
0.90 |
0.88 |
Quick Ratio |
1.028 |
1.03 |
1.029 |
1.031 |
|
1.33 |
1.21 |
1.15 |
1.25 |
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