Q 2. Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? i. Profitability index (PI) ii. Internal Rate of Return (IRR) iii. Payback Period (PBP) 2020- 2020 2019 2018 Industry Average Ratio Inventory Turnover 62.65|42.42|32.25| Receivables in days 94 Debt to Equity Quick Ratio 53.25 63 50 115 0.75 0.85 0.90 0.88 1.028 1.03 1.029 1.031 Current Ratio 1.33 | 1.21 1.15 1.25
Q 2. Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? i. Profitability index (PI) ii. Internal Rate of Return (IRR) iii. Payback Period (PBP) 2020- 2020 2019 2018 Industry Average Ratio Inventory Turnover 62.65|42.42|32.25| Receivables in days 94 Debt to Equity Quick Ratio 53.25 63 50 115 0.75 0.85 0.90 0.88 1.028 1.03 1.029 1.031 Current Ratio 1.33 | 1.21 1.15 1.25
Chapter1: Financial Statements And Business Decisions
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