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Chapter 11 Review

Across
Internal rate of return = Required rate of return, NPV=______
Net Income+_____ =Net Cash Flow
Net operating income/ Initial Investment=
Initial Investment/ Annual Net Cash Flows=
Attempt to rank acceptable alternative from the most to least appealing
Projects are unrelated
Profitability Index > 1= project_____.
Down
Pertain to whether or not some proposed investment is acceptable these decision come first
Profitability Index < 1= project______.
The minimum required rate of return
Investments choices are competing alternatives
____ method Compares the present value of a project's future cash inflow to the present value of cash outflows?
Present value of an ______ is the value now of a series of equal amounts to be received for some specified number of periods in the future