Match each capital budgeting term with its definition:

Net Present Value

Discounted cash flow valuation

Payback Period

Internal rate of return

Net present value profile

Mutually exclusive investments

Modified internal rate of return

Profitability Index

Crossover rate

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A situation where taking one investment prevents the taking of another.

The process of valuing an investment by discounting its future cash flows.

A modified version of the internal rate of return that removes the problem of multiple IRRs.

The discount rate that makes net present value equal to zero.

A graphical representation of the relationship between an investment's net present value and various discount rates.

The amount of time required for an investment to generate cash flows sufficient to cover its initial cost.

The discount rate at which two mutually exclusive projects have the same NPV and "switch" in terms of preference.

The present value of an investment's cash flows divided by its initial cost

The difference between an investment's market value and its cost.