Sophia Finance Milestone 4 questions and answers

12/8/2020 Sophia :: Welcome




Score 22/23




You passed this Milestone
22 questions were answered correctly.
UNIT 4 — MILESTONE 4
1 question was answered incorrectly.
1

Which of the following is a goal of working capital management?



To eliminate the risk of customers defaulting on credit



To minimize liquidity and maximize profitability



To make long-term capital investment decisions



To balance the cash conversion cycle against maximum revenue

CONCEPT
Working Capital Financing
2

A construction company is preparing a capital budget and considering four long-term investments. The
profitability index of each project is as follows:

Project A: 0.34
Project B: 1.12
Project C: 1.26
Project D: 0.93

In theory, which two projects should the company pursue?
https://snhu.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/7084602 1/12

, 12/8/2020 Sophia :: Welcome




Projects A and D



Projects B and D



Projects B and C



Projects A and C

CONCEPT
Introduction to Capital Budgeting
3

What type of inventory does paint that has been colored but not yet put into cans represent for a paint
company?



Raw materials



Class C



Finished goods



Work in process

CONCEPT
Inventory Management
4

To manage cash efficiently, a company should try to collect payment for delivered products or services
__________.



in a way that maximizes float time



https://snhu.sophia.org/spcc/principles-of-finance/milestone_take_feedbacks/7084602 2/12