Question
You are the Chief Investment Officer of TechInvest Inc., which invests in technology companies. One of your analysts presents to you a report analyzing two
You are the Chief Investment Officer of TechInvest Inc., which invests in technology companies. One of your analysts presents to you a report analyzing two software gaming companies named Defense of the Ancients (DotA) Inc. and League of Legends (LoL) Inc. His report states the following:
- DotA Inc. has $5 million in cash flows from operations and has a cash operating cycle of +5 days.
- LoL Inc. has $5 million in cash flows from operations and has a cash operating cycle of +45 days.
The analyst tells you that he believes you should invest in DotA Inc. because of its stronger operating cash cycle. Do you take his recommendation? If so, why? If not, why? (3 points)
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Introduction To Financial Accounting Multiple Choice Questions
Authors: George Fossi Kamga
1st Edition
6205912481, 978-6205912485
