Homework Answers
| Answers | ||||||||||||||||||
| a) | Is only concerned with the time it takes to get cash outflows returned | Pay back period | ||||||||||||||||
| b) | Considers operating income but not the time value of money in its analysis. | Accounting rate of return | ||||||||||||||||
| C) | Compares the present value of cash outflows to the present value of cash inflows to determine investment worthiness | Net present value | ||||||||||||||||
| d) | The true rate of return an investment earns - | INternal Rate of return | ||||||||||||||||
a.
Is only concerned with the time it takes to get cash outflows returned
4. Payback
b.
Considers operating income but not the time value of money in its analyses
1. Accounting rate of return
c.
Compares the present value of cash outflows to the present value of cash inflows to determine investment worthiness
3. Net present value
d.
The true rate of return an investment earns
2. Internal rate of return
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