1. Creditors generally prefer companies with large current ratios. Does that imply a company should try to remain a very high current ratio? Why?
2. According to the textbook, the net present value rule states that An investment should be accepted if the net present value is positive and rejected if it is negative. What does a net present value of zero mean? If you were analyzing a project with a zero net present value, would you accept or reject that project? Why?