1. Although flawed, the IRR is widely used. Which of the following is the best explanation for that phenomenon?
A. It is easy to calculate.
B. People like to compare percentages.
C. It is less flawed than the alternative, i.e. the NPV.
D. One still arrives at profitable investment decisions, just not at the most profitable investment decisions.
E. Both A and D are correct.
2. Your company had $16 million in sales last year. Its cost of goods sold was $11.2 million and its average inventory balance was $1,400,000. What was its average days of inventory? (Hint use a 365-day year.)
The average days of inventory was ___days(Round to two decimal places)