You have just started a business and want your new employees to be well informed about capital budgeting Requirement 1 Match each definition with its capital budgeting method METHODS 1 Rate of return 2 Internal rate of return 3 Net present value 4 Payback period DEFINITIONS A Is only concerned with...

You have just started a business and want your new employees to be well informed about capital

Question:

You have just started a business and want your new employees to be well informed about Match each definition with its method.
METHODS
1. Rate of return.
2. Internal rate of return.
3. .
4. Payback period.
DEFINITIONS
A. Is only concerned with the time it takes to get cash outflows returned.
B. Considers operating income but not the time value of money in its analyses.
C. Compares the present value of cash out to the cash in to determine investment worthiness.
D. The true rate of return an investment earns.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...