A number of terms and concepts from this chapter and a list of descriptions, definitions, and explanations
Question:
A number of terms and concepts from this chapter and a list of descriptions, definitions, and explanations appear on the following page. For each term listed on the left, choose at least one corresponding item from the right. Note that a single term may have more than one description and a single description may be used more than once or not at all.
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1. Time value of money 2. Profitability index 3. Payback period 4. Net present value method 5. Future value 6. Preference decision 7. Internal rate of return method a. Discounted cash flow method of capital b. Estimate of the average annual return on c. Capital budgeting method that identifies budgeting investment that a project will generate the discount rate that generates a zero net present value d. Decision that requires managers to evaluate 8. Screening decision potential capital investments to determine 9. Accounting rate of return whether they meet a minimum criterion. e. Only capital budgeting method based on net f. Ratio of the present value of future cash flows g. Value that a cash flow that happens today will h. Concept recognizing that cash received today income instead of cash flow to the initial investment. be worth at some point in the future. is more valuable than cash received in the future i. Decision that requires a manager to choose j. How long it will take for a particular capital k. Capital budgeting technique that compares from a set of alternatives. investment to pay for itself the present value of the future cash flows for a project to its original investment.
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Related Book For
Managerial Accounting
ISBN: 978-0078025518
2nd edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
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