Assignment Content
Once your faculty marks this activity as complete in the gradebook, the Competency Assessment will open for you to submit.
Reflection
This reflection is comprised of two sections, collectively totaling a minimum of 500 words. Complete your reflection by responding to all prompts.
Ratio Analysis
Financial statement analysis focuses primarily on isolating information that is useful for making a particular decision. Through ratio analysis, users of financial data can analyze various relationships between items reported.
Describe the 3 main categories of ratios and provide a specific example of a ratio that is used in each category. For each of the 3 ratios you selected, describe how it is used in managerial decision-making.
Analytical Techniques
Managers can choose from several analytical techniques to help them make capital investment decisions. Each technique has advantages and disadvantages. Distinguish between the 3 capital investment techniques of:
- Net Present Value
- Internal Rate of Return
- Payback Method
Describe what you consider to be the top 2 advantages and 2 disadvantages of each technique and provide an example to support your top advantage of each method.
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