Matching
Match the following:
Premises:
Payback period
Responses:
The time it takes for a project's cash flows to break even.
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 difference between the present values of cash inflows and outflows
Correct Answer:
Premises:
Responses:
The time it takes for a project's cash flows to break even.
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 difference between the present values of cash inflows and outflows
Premises:
The time it takes for a project's cash flows to break even.
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 difference between the present values of cash inflows and outflows
Responses:
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