Exercise $26\mathrm{.}1($Static$)$ Accounting Terminology $($LO$26-1,$ LO$26-2,$ LO$26-3,$ LO$26-4,$ LO$26-5)$

The following are $10$ technical accounting terms:

Net present value

Discount rate

Sunk cost

Capital budget audit

Capital budgeting

Payback period

Salvage value

Incremental analysis

Present value

Return on average investment

Required:

Each of the following statements may $($or may not$)$ describe one of these technical terms. For each statement, indicate the accounting term described, or answer "None" if the statement does not correctly describe any of the terms.

$\backslash$table$[[$a$.$ The examination of differences among revenue, costs, and cash flows under altemative courses of action.$],[$b$.$ A cost incurred in the past that cannot be changed as a result of future actions.$],[$c$.$ The process of planning and evaluating proposals for investments in plant assets.$],[$d$.$ The average annual net income from an investment expressed as a percentage of the average amount invested.$],[$e$.$ The length of time nepessary to recower the entire cost of an investment from resulting annual net cash flows.$],[$f$.$ The present value of an investment's expected future cash flows.$],[$g$.$ The amount of money today that is considered equivalent to the cash flows expected to take place in the future.$],[$h$.$ The required rate of return used by an imvestor to discount future cash flows to their present value.$],[$i$.$ Often an investment's final cash flows to be considered in discounted cash flow analysis.$]]$