1. Which of the following methods does not consider the investment’s profitability?
a. Payback
b. ARR
c. NPV
d. IRR
2. Assume a company has a current ratio of 2.0. List two examples of transactions that could cause the current ratio to increase. Also list two examples of transactions that could cause the current ratio to decrease.
3. Cash + short-term investments + net current receivables) divided by current liabilities is the formula for
a. return on assets
b. current ratio
c. working capital ratio
d. acid-test ratio