Matching
Presented below are terms preceded by letters a through g and followed by a list of definitions 1 through 7.Match the letter of the term with the definition.Use the space provided preceding each definition.
Premises:
A process of analyzing alternative long-term investments.
The time expected to pass before the net cash flows from an investment equals its initial cost.
Initial cost of an investment subtracted from discounted future cash flows from the investment.
A minimum acceptable rate of return.
Annual after-tax net income divided by annual average investment.
Cash inflows minus cash outflows for the period.
A discount rate that results in a net present value of zero.
Responses:
Hurdle Rate
Net Cash Flow
Accounting Rate of Return
Internal Rate of Return
Capital Budgeting
Net Present Value
Payback Period
Correct Answer:
Premises:
Responses:
A process of analyzing alternative long-term investments.
The time expected to pass before the net cash flows from an investment equals its initial cost.
Initial cost of an investment subtracted from discounted future cash flows from the investment.
A minimum acceptable rate of return.
Annual after-tax net income divided by annual average investment.
Cash inflows minus cash outflows for the period.
A discount rate that results in a net present value of zero.
Premises:
A process of analyzing alternative long-term investments.
The time expected to pass before the net cash flows from an investment equals its initial cost.
Initial cost of an investment subtracted from discounted future cash flows from the investment.
A minimum acceptable rate of return.
Annual after-tax net income divided by annual average investment.
Cash inflows minus cash outflows for the period.
A discount rate that results in a net present value of zero.
Responses:
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