Final answer:
An optimal current ratio for a company is between 1.5 and 3, and incorporating a 5% social benefit for each investment can enhance the value of the company's projects.
Step-by-step explanation:
An optimal current ratio for a company that signifies strong liquidity and the ability to generate positive income typically falls between 1.5 and 3. This range suggests that the company has adequate resources to cover its current liabilities without being overburdened by idle or inefficient assets.
For the Gizmo Company, as they plan to develop new household gadgets and invest in research and development, they should consider the additional 5% social benefit that each investment carries. This acts as an extra incentive to pursue investments that not only serve the company’s financial interests but also contribute positively to society. For example, an investment yielding a 6% return for the company actually provides an 11% social benefit, enhancing the overall value of the project.
The information provided about the Gizmo Company aligns with sound financial decision-making and reflects a broader understanding of an investment’s impact, both internally for the company and externally for society.