V1 Section IV Presented below are terms preceded by letters and followed by a list of definitions. Match the letter with the term with the definition. Use the space provided preceding each definition. Not all terms will be used. G) Net cash flow H) Accounting rate of return 1) Capital budgeting J) Net present value K) Equivalent cash flows L) Absolute rate of return A) Discounting B) Break-even time C) Uneven cash flows D) Hurdle rate E) Payback period F) Internal rate of retum (1) A process of analyzing alternative long-term investments. (2) Cash inflows minus cash outflows for the period. (3) A minimum acceptable rate of return. (4) A discount rate that results in a net present value of zero (5) Annual after-tax net income divided by annual average investment. (6) When converting net income to cash flow, a company that uses MACRS has this type of cash flow. (7) Initial cost of an investment subtracted from discounted future cash flows from the investment. (8) The process of restating future cash flows in terms of their present value. (9) A measure of the amount of time needed for the present value of the net cash flows to equal the initial cost of an investment. (10) The time expected to pass before the net cash flows from an investment equals its initial cost