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Chapter 13

Student: Brytnie Braverman
Horizontales
A decision as to whether a proposed investment project is acceptable
The discount rate at which the net present value of an investment project is zero; the rate of return of a project over its useful life
The length of time that it takes for a project to fully recover its initial cost out of the net cash inflows that it generates
Current assets less current liabilities
The difference between the present value of an investment project's cash inflows and the present value of its cash outflows
A decision in which the alternatives must be ranked
Verticales
The average rate of return a company must pay to its long term creditors and share holders for the use of their funds
The process of planning significant investments in projects that have long term implications such as the purchase of new equipment or the introduction of a new product
Actual cash outlays for salaries, advertising, repairs, and similar costs
The follow up after a project has been approved and implemented to determine wether expected results were actually realized