Please answer ONE of the following:
1) Discuss NPV and IRR. Does the assumption concerning the reinvestment of intermediate cash inflow tend to favor NPV or IRR? In practice, which technique is preferred and why?
2) What is the weighted marginal cost of capital (WMCC)? What does the WMCC schedule represent? Do you believe this is always accurate?
Second Paragraph:
Please answer ONE of the following:
1) What is the relationship among operating leverage, financial leverage and the total leverage of the firm? Do these types of leverage complement one another? Why or why not? What is your preferred measurement?
2) What is the difference between the firm's operating cycle and its cash conversion cycle? Which would be more important to you as an owner and why?