1. For purposes of capital budgeting, estimated ___ and outflows are preferred for inputs

into the capital budgeting decision tools.

2. The technique which identifies the time period required to recover the cost of the

investment is called the ___ method.

3. Under the net present value method, the interest rate to be used in discounting the

future cash inflows is the ___.

4. In using the net present value approach, a project is acceptable if the project's net

present value is ___ or ___.

5. The two discounted cash flow techniques used in capital budgeting are (1) the ___

method and (2) the ___ method.

6. A project's ___ benefits, such as increased quality or safety, are often incorrectly ignored

in capital budgeting decisions.

7. The ___ is a method of comparing alternative projects that takes into account both the

size of the investment and its discounted future cash flows.

8. A well-run organization should perform an evaluation, called a ___, of its investment

projects after their completion.

9. The internal rate of return method differs from the net present value method in that it

results in finding the ___ of the potential investment.

10. A major limitation of the annual rate of return approach is that it does not consider the

___ of money.