Term Replacement decision Net present value NPV profile Post-audit analysis Internal rate of return Capital budgeting Independent project Payback period Required rate of return Modified internal rate of return Description Answer A. 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. B. 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, assuming that cash flows are reinvested at the firm's required rate of return Also called a firm's hurdle rate, it is used as the discount rate in a firm's net present value (NPV) calculations or the basis of comparison for a project's internal rate of return (IRR) D. A curve showing the relationship between a projects's net present value (NPV) and various discount rates. E. The discount rate that equates the present value of a capital project's expected cash inflows and its initial cost. F. The process of planning and evaluating expenditures on assets Whose cash flows are expected to extend beyond one year. A capital budgeting method whose key value is calculated as the difference between the discounted value of an asset's future cash inflows and its purchase price. H. The acceptance or rejection decision made for this type of project does affect the acceptance or rejection of another proposed capital project I. A capital budgeting analysis that determines whether a capital asset should take the place of an existing asset to maintain or improve a firm existing operations. J. The term used to describe the time necessary to recover the original cost of an investment from its expected cash inflows