$1.$ Basic concepts $-$ Capital budgeting

Select the term that corresponds to each of the given descriptions. $($Note: There is only one possible answer for each description.$)$

DescriptionsTermsThis value is calculated by summing a project$$s expected annual cash inflows until their cumulative value equals the project$$s initial cost.$$A capital budgeting method whose key value is calculated as the difference between the discounted value of an asset$$s future cash inflows and its purchase price.$$A curve showing the relationship between a project$$s net present value $($NPV$)$ and various discount rates.$$A term used to describe a firm$$s required rate of return; this value is used as the hurdle against which a project$$s internal rate of return is compared to ascertain whether a project is acceptable.$$A capital budgeting analysis that determines whether a capital asset should take the place of an existing asset to maintain or improve a firm$$s existing operations.$$