Instructions To aid us in the modeling of the financial decisions facing Imprimante, it is helpful and necessary to determine the meaning of the parameters and variables represented in the APV equation. Parameters are numerical factors that define a system and whose value is selected for a particular circumstance or external condition. For example, in our APV model the tax rate is determined outside the company's actions (by the government) but will affect all aspects of the model. As such, a parameter, once determined, must apply equally and consistently across the model. A variable is a quantity that may change within the context of a defined system or particular circumstance or external condition. Usually variables will change over time in response to actions taken by the company. Both parameters and variables are represented using letters from the Latin or Greek alphabet as we can see in the APV equation.

Using the APV equation, match the following terms with the correct description. Note that there are more responses than terms to identify so please consider your choices carefully. APV=t=1T(1+kud)tStOCFt(1)+t=1T(1+id)tStDt+t=1T(1+id)tStIt+(1+Kud)TTTVTS0C0+S0RF0+S0CL0t=1T(1+id)tStLPt Using the APV equation, match the following terms with the correct description. Note that there are more responses than terms to identify so please consider your choices carefully. APV=t=1T(1+kud)tStOCFt(1)+t=1T(1+id)tStDt+t=1T(1+id)tStIt+(1+Kud)TTTVTS0C0+S0RF0+S0CL0t=1T(1+id)tStLPt