1. Which statement below best describes the rule to apply for Net Present Value (NPV)?
A company should invest in projects that produce a negative NPV.
A company should invest in projects that produce the highest NPV.
A company should invest in all positive NPV projects.
A company should not invest in projects using the NPV method.
2. Which ratio measures how effectively a company is using assets to generate revenue?
Net margin
Plant assets to long-term liabilities
Asset turnover
Inventory turnover