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Explain the factors responsible for determination of the firm's optimal Fixed assets capacity
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- Explain how current assets’ investment policies affect the firm’s risk and return trade-offs.What is the MOST important variable of the financial planning process? Select one: a. The costs b. The capacity of the fixed asset c. The pro forma income statement d. The sales forecastDiscuss the risk–return relationship involved in the firm’s asset-investment decisions as that relationship pertains to its working capital management.
- The area of financial management that addresses the choice of long-term assets in which a firm will invest isExplain the meaning of the terms working capital and working capital management in a succinct manner. Explain the link between current asset policy and liquidity, profit, and risk as well as any other relevant information. Which policy, in your opinion, is the best?What is the calculation for Return On Asset (ROA) for the firm in that picture?
- Define the term capital investment.The cost of capital represents a. the capital outlay required in a project. b. the initial investment of a project. c. the IRR of the investment. d. the minimum ROI of the investment.Explain briefly what the terms working capital and working capital management imply. Explain the link between current asset policy and liquidity, profit, and risk as well as any other considerations. Which policy do you believe is the best?
- Explain what net operating working capital is, and explain how changes in that quantity can affect the cash flows of an investment proposalExplain briefly what working capital and working capital management are and what they do. Explain the link between current asset policy and liquidity, profit, and risk as well as any other relevant factors. So, which policy do you believe to be the most beneficial?What is the main determinant of the level of investment?