Completion Statements

Fill in the blank(s) to complete each statement.

1. The ___________________________________ method of capital budgeting is based on income rather than cash flows.

2. The discount rate that makes the net present value of a project equal to zero is called the ______________________________________.

3. In a capital-budgeting project, the investment required for accounts receivable and inventories is called _______________________________.

4. (Appendix) ________________________ is the decline in the general purchasing power of the monetary unit.