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Hey can anyone help me with these matching vocal terms? Tenn Replacement decision Net present value NW prole Post-audit analysis Internal rate of return Capital
Hey can anyone help me with these matching vocal terms?
Tenn Replacement decision Net present value NW prole Post-audit analysis Internal rate of return Capital budgeting In dependent project Payback period Required rate of return Modied internal rate of return An swer D DDDDDDD Description The term used to describe the time necessary to recover the original cost of an investment from its expected cash inows. A capital budgeting analysis that determines whether a capital asset should take the plaoe of an existing asset to maintain or improve a firm's existing operations. The discount rate at which the present value of a project's cash outows is equal to the present value of the sum of its future cash inows, assuming that cash flows are reinvested at the firm's required rate of return. This capital budgeting technique calculates a discount rate that should be compared to a firm's cost of capital to determine whether a capital project should be accepted or rejected. The prooess of planning and evaluating expenditures on assets whose cash flows are expected to extend beyond one year. The decision rule for this capital budgeb'ng method states a project should be considered acceptable if the difference between its discounted cash inows and cost is posiijve. Capital projects whose cash flows are not affected by the acceptanoe or rejection decisions made regarding other projects. A term used to describe a firm's cost of capital; this value is used as the hurdle against which a project's internal rate of return is compared to ascertain whether a project is acceptable. This analysis is conducted following the implementation of an accepted capital project and is intended to improve a firm's forecasting prooess and to improve the firm's operations. A graph that illustrates the relationship between a project's net present value {NW} calculated at a range of hurdle ratesStep by Step Solution
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