Matching
Match the following definitions with the appropriate terms
Premises:
A discount rate that results in a net present value of zero.
Cash inflows minus cash outflows for the period.
A minimum acceptable rate of return.
The time expected to pass before the net cash flows from an investment equals its initial cost.
Annual after-tax net income divided by annual average investment.
A process of analyzing alternative long-term investments.
Initial cost of an investment subtracted from discounted future cash flows from the investment.
Responses:
Net present value
Capital budgeting
Accounting rate of return
Net cash flow
Internal rate of return
Payback period
Hurdle rate
Correct Answer:
Premises:
Responses:
A discount rate that results in a net present value of zero.
Cash inflows minus cash outflows for the period.
A minimum acceptable rate of return.
The time expected to pass before the net cash flows from an investment equals its initial cost.
Annual after-tax net income divided by annual average investment.
A process of analyzing alternative long-term investments.
Initial cost of an investment subtracted from discounted future cash flows from the investment.
Premises:
A discount rate that results in a net present value of zero.
Cash inflows minus cash outflows for the period.
A minimum acceptable rate of return.
The time expected to pass before the net cash flows from an investment equals its initial cost.
Annual after-tax net income divided by annual average investment.
A process of analyzing alternative long-term investments.
Initial cost of an investment subtracted from discounted future cash flows from the investment.
Responses:
Related Questions
Q137: A company has a decision to
Q138: For projects financed from borrowed funds,the hurdle
Q139: A company is considering a five-year
Q140: The _ is the simplest capital budgeting
Q142: The minimum acceptable rate of return on
Q143: Match the following definitions with the appropriate
Q171: _ is the process of analyzing alternative
Q181: The net present value decision rule requires
Q186: The _ is the rate that yields
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
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents