Matching
Match the following:
Premises:
NPV
Responses:
The difference between the present values of cash inflows and outflows
The interest rate at which the present values of a project's inflows and outflows are equal.
A procedure that ranks capital projects according to the ratio of the present values of cash inflows to outflows
The time it takes for a project's cash flows to break even.
Correct Answer:
Premises:
Responses:
The difference between the present values of cash inflows and outflows
The interest rate at which the present values of a project's inflows and outflows are equal.
A procedure that ranks capital projects according to the ratio of the present values of cash inflows to outflows
The time it takes for a project's cash flows to break even.
Premises:
The difference between the present values of cash inflows and outflows
The interest rate at which the present values of a project's inflows and outflows are equal.
A procedure that ranks capital projects according to the ratio of the present values of cash inflows to outflows
The time it takes for a project's cash flows to break even.
Responses:
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