Match each of the following terms with the appropriate definition.

A. Discounting

B. Net Present Value

C. Capital Budgeting

D. Accounting Rate of Return

E. Net Cash Flow

F. Internal Rate of Return

G. Payback Period

H. Hurdle Rate

1 . A return on investment which results in a zero net present value.

2 . Cash inflows minus cash outflows for the period.

3 . A minimum acceptable rate of return on a potential investment.

4 . The time expected to recover the cash initially invested in a project.

5 . A capital budgeting method focused on the rate of return on a project's average investment.

6 . The process of restating future cash flows in terms of present time value.

7 . A process of analyzing alternative long-term investments.

8 . A comparison of the cost of an investment to its projected cash flows at a single point in time.