Question 1Match each term with its definitionPrompts Payback Accept or reject projects Capital rationing Runking projects Accounting rate of return Weighted Average Cost of Capital DepreciationAnswersSelect matchCapital busgeting model defined by ratio of average accounting profit s over the project s life divided by some estimate of the average annual investmentABempt to meanure rate of return required by firm to satisfy sources of capitalShortage of investment capital caused either by unwillingness to provide additional capital or internal decision to limit growthReduction in book value of an asset based using accounting rulesDecision cannot be made in isolation because they affect other projectsdecisions made without affecting other projectsHow long it takes to recoup the original investment