Description Term Answer Replacement A. A capital budgeting analysis that determines whether a capital asset decision should take the place of an existing asset to maintain or improve a firm's existing operations. Net present value B. The acceptance or rejection decision made for this type of project does not affect the acceptance or rejection of another proposed capital project NPV profile C. This analysis involves a comparison of the expected and actual results for a given capital project and the development of an explanation for any disparity between them Post-audit analysis D. This capital budgeting technique calculates the net dollar value of a capital project and its effect on the value of the firm Internal rate of E. A term used to describe a firm's cost of capital; this value is used as the hurdle against which a project's internal rate of return is compared to return ascertain whether a project is acceptable. Capital budgeting F. This analytical technique is less reliable for identifying acceptable projects as it ignores the time value of money. Independent G. Agraph that illustrates the relationship between a project's net present value (NPV) calculated at a range of hurdle rates. project Payback period H. The process of planning and evaluating expenditures on assets whose cash flows are expected to extend beyond one year Required rate of I. The discount rate at which the present value of a project's cash outflows is equal to the present value of the sum of its future cash inflows, return assuming that cash flows are reinvested at the firm's required rate of return Modified internal J. The discount rate that equates the present value of a capital project's rate of return expected cash inflows and its initial cost