Solved

Presented Below Are Terms Preceded by Letters a Through G

Question 131

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:

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.
Related Questions

Q130: Presented below are terms preceded by letters

Q143: A _ arises from a past decision

Q148: The _ is computed by dividing a

Q167: A(n) _ requires a future outlay of

Q174: Relevant costs are also known as _.

Q181: The net present value decision rule requires

Q182: In evaluating capital budgeting alternatives, there are

Q186: The _ is the rate that yields

Q187: In this chapter, you examined several short-term

Q188: The _ is computed by discounting the

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents