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Chap 11 Review

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