Cash conversion cycle a. is longer if you decrease the level of your inventories. b. is longer if you increase the volume of your payables. c. is calculated in percentage. d. is shorter if customers are paying by cash (ceteris paribus).
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- TRUE OR FALSE. IF FALSE CORRECT THE SENTENCE. A. True OR False: Deferred Annuities are annuities that have payments that don't begin until after the end of the second period. B. Uniform gradient cash flow is a cash flow that increases by a uniform amount each period, beginning at the end of period one.Please answer the following question. In this method, the company compares the amount spent on the investment with the discounted expected future cash inflows. a.Payback b.NRV c.Investment d.IRRA. What is the incremental cash flows from switching credit policies? B. What is the cost of switching? C. What is your recommendation? D. What is the break-even sales increase? Interpret.
- Please answer the following questions 1. _________________ is the discounted net future cash inflows divided by the initial cash outlay. a.Payback b.NRV c.Profitability Index d.IRR 2. __________________________ serves as a framework for measuring performance. a.NRV b.Payback c.Profitability Index d.Balanced Scorecard 3. Which of the following is a performance measures of the balanced scorecard: a.internal Business perspective b.all of the answers are correct c.financial Perspective d.customer perspectiveA negative cash conversion cycle (CCC) means the average payment period (APP) exceeds the operatins cycle (OC).Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level
- Lowering the discount rate on a cash flow will its present value. A. decrease, then increase O B. increase, then decrease O C. decrease D. increaseIn a cash flow series regarding the gradient: Select one: a. Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period b. Either an increase or decrease in the amount of a cash flow is called the gradient с. The gradient in the cash flow may be positive or negative o d. All of the above is correctThe discounted payback method considers the time value of money as well as the cash flows after the payback.Group of answer choices A.false B. true
- there are two policies to consider when payment period is less than compounding period. These are related to interperiod cash flows earn. Select one: O True O FalseDetermining the future value of one or more present day cash flows is known as ________. A. disinvesting B. annuitizing C. discounting D. compoundingWhich one of the following will decrease the length of the cash cycle O a. Increase in inventory period O b. Increase in accounts receivable period C .Increase in accounts payable period d. Decrease in accounts payable period