Solved

Match Each of the Following Terms with the Best Definition

Question 179

Matching

Match each of the following terms with the best definition given below.

Premises:
Average rate of return
Capital investment analysis
Cash payback period
Time value of money concept
Net present value method
Responses:
Average income as a percentage of average investment
The investment analysis method that is most often used by large U.S. companies.
Capital budgeting
Recognizes that a dollar today is worth more than a dollar tomorrow.
Initial cost divided by Annual net cash inflow of an investment

Correct Answer:

Average rate of return
Capital investment analysis
Cash payback period
Time value of money concept
Net present value method
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