Match the following terms to the statements shown below. Use capital letters for your answers. Each term can only be used once.

A. Accounting rate of return G. Internal rate of return uneven cash

flows

B. After-tax cash flows H. Net present value

C. Annuity I. Payback period

D. Capital budget J. Present value analysis

E. Capital budgeting decision K. Soft benefits analysis

F. Cost of capital L. Time value of money

______ 1. Represents the interest that can be earned.

______ 2. Is based on the average investment.

______ 3. Is the same as the required rate of return.

______ 4. An even annual cash flow.

______ 5. Converting future dollars into their equivalent current value.

______ 6. The length of time it takes to recover the initial investment.

______ 7. Cash inflows times one minus the tax rate.

______ 8. The same as investment decisions.

______ 9. The sum of the present values of all cash flows.

______ 10. The final list of approved projects.