Question: Match each term to its correct definition. Terms: A. Is computed by finding the discount rate where the NPV of a project i Avoidable cost
Match each term to its correct definition. Terms: A. Is computed by finding the discount rate where the NPV of a project i Avoidable cost I B. A decision that is not part of a company's regular ongoing business. C. A machine or some other part of a process that limits the total output of the entire system. Constraint A limitation under which a company must separate, such as a limited available machine time or raw materials, that restricts the company's ability to satisfy demand. Interest Present Value E. A decision concerning whether a product should be purchased internally or purchased from a supplier. Make or Buy Decision A cost that can be eliminated choosing one alternative over another in a decision. This term is F. synonymous with differential cost and relevant cost. Time Value of Money G. The rate of return that is used to find the present value of future cash flows. Net Present Value H. A series of identical cash flows. Special Order I. The process of paying interest on top of interest. Recognizes that a dollar today is worth more than a dollar a year from now, if for no other reason than " a person could invest and have more money one year later. of Return Annuity K. The present value now of an amount that will be received some time in the future. Discount Rate L. The difference between the net present value of inflows to net present value of outflows
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