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FIN 3403 CH 09: Net Present Value and Other Investment Rules

Across
You should accept a project if the IRR is greater than the ______ required rate of return.
The profitability index is best used under capital _______.
You should accept a project if its payback period is ____ than a specific time limit.
This evaluation tool is calculated as the project's initial cost plus the present value of all future cash flows.
A disadvantage of the discounted payback period rule is that it uses a(n) _______ hurdle time limit.
An advantage of the NPV rule is that it accounts for TVM and ____.
The internal rate of return is the discount rate that sets the Net Present Value equal to ____ .
Down
This method cannot be used when the cash flow signs change more than once.
If only ONE of several potential projects can be chosen, the projects are called _____ exclusive.
The rate at which the NPVs of two projects are equal is called the _____ rate.
A disadvantage of the payback period rule is that it is biased against____-term projects.
The number of years to recover a project's initial costs is defined as a the ______ period.
You should _____ a project if the PI is less than 1.