match the numbered item on the right with the lettered item on the left 565862

a. Annuity

1. A measure of the time that will elapse until an initial investment is recouped.

b. Cost of capital

2. A decision regarding what type of capital will be used to fund an investment.

c. Financing decision

3. A cash flow that is repeated in consecutive periods.

d. Investment decision

4. Present value of cash inflows less present value of cash outflows.

e. Judgmental method

5. A method of evaluating risk.

f. Mutually exclusive projects

6. A decision in which accepting one project requires acceptance of another.

g. Mutually inclusive projects

7. A future amount that has been discounted to the present.

h. Net present value

8. A decision in which the acceptance of one project implies the rejection of others.

i. Payback period

9. A decision about which assets a firm will acquire.

j. Present value

10. The discount rate often used in investment analysis.

a. Capital asset

1. Effect of uncertainty.

b. Compound interest

2. Recapture of the original investment.

c. Discount rate

3. Sum plus its accumulated interest.

d. Future value

4. Interest earned on interest.

e. Hurdle rate

5. Discount rate that causes the NPV to equal $0.

f. Internal rate of return

6. Benchmark for evaluating the internal rate of return on a project.

g. Profitability index

7. Rate used to find the present value of a future amount.

h. Return of capital

8. Interest.

i. Return on capital

9. Long lived asset.

j. Risk

10. Derivation of NPV used to compare projects of unequal size.