Below is a list of terms relevant to capital budgeting decisions.

1. Capital budgeting

2. Capital expenditures

3. Time value of money concept

4. Long range planning

5. Post audit

Required

For each of the statements below, select the most relevant term from the above list. Each term above may be used more than once.

1. Investment of financial resources with the expectation it will generate future financial inflows that exceed the initial cost. ____________________

2. Process that involves identifying desirable projects, evaluating proposals, and selecting proposals that meet minimum criteria. __________________

3. Involves the development of project performance comparing planned and actual results. _____________
4. Concepts and tools that organize information and evaluate alternatives. _____________

5. Explains why monies received or paid at different points in time must be adjusted to comparable values. __________________

6. Requires an adjustment to make cash flows comparable when they are expected to occur at different points in time. __________________

7. Planning beyond the next budget year. ________________

8. Helps the capital budgeting committee do a better job in evaluating new proposals. ______