Match the description of these financial metrics to their terms. 1. The average annual income from the

Question:

Match the description of these financial metrics to their terms.
1. The average annual income from the IT initiative divided by the initial investment cost
2. The sum of the present value of all cash inflows less the sum of the present value of all cash outflows
3. The discount rate (return) that makes a project's net present value equal to zero
4. The amount of time necessary to recoup a project's initial investment

A. Accounting rate of return

B. Internal rate of return

C. net present value

D. Payback period

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...