The lower the inventory turnover measure, the:

Group of answer choices

lower the inventory

larger the inventory

faster a firm sells/uses its inventory

slower a firm sells/uses its inventory

What do liquidity ratios speak about a firm?

Group of answer choices

It measures a firms ability to pay off its long-term debts.

It measures a firms ability to service its short-term debts.

It measures a firms level of indebtedness.

It measures a firms attitude toward use of debt.

You are comparing two investment options. The cost to invest in either option is the same today. Option A pays five annual payments starting with $8,000 the first year followed by four annual payments of $3,000 each. Option B pays five annual payments of $4,000 each. Which one of the following statements is correct given these two investment options?

Group of answer choices

Option B has a higher present value than option A given a positive rate of return.

Option B has a lower future value at year 5 than option A given a rate of 0%

Option A is preferable because it is an annuity due.

Both options are of equal value given that they both provide $20,000 of income.

Option A is the better choice of the two given any positive rate of return.

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