11. The following questions are in relation to Capital Budgeting Techniques: Fill in the blanks: What is
Question:
11. The following questions are in relation to Capital Budgeting Techniques:
Fill in the blanks:
What is the valuation method used to estimate the attractiveness of an investment referred to as? Adjusted Present Value __________________
What is the rate of average annual net income to the initial investment or average investment (book value) called? __________ Accounting Rate of Return ______________________
What is the discount rate that makes the initial investment equal the present value of subsequent net cash inflows?_______Internal Rate of Return (IRR______________________
What is the number of years referred to in order to recover the initial investment? _____ discounted payback __period_________
What is the difference between the initial investment and the present value of subsequent net cash inflows discounted at a given interest rate called? ____ Net Present Value (NPV). __________________________________