A curve showing the relationship between a project's net present value $($NPV$)$ and various discount rates.

The acceptance or rejection decision made for this type of project does not affect the acceptance or $"$ rejection of another proposed capital project.

This capital budgeting technique calculates a discount rate that should be compared to a firm's required rate of return to determine whether a capital project should be accepted or rejected.

This analytical technique is less reliable for identifying acceptable projects as it ignores the time value of money.

This analysis is conducted following the implementation of an accepted capital project and is intended to improve a firms forecasting process and to improve the firm's operations.