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Accounting Rate of Return
Net Present Value
Payback Period
Internal Rate of Return
100
In the Accounting Rate of Return equation, what does NOI stand for?
Net Operating Income
100
_____ - Initial Investment = Net Present Value
What is Present Value
100
Net Income + Depreciation = _______
What is Annual Cash Flow
100
The Internal Rate of Return is the interest rate that makes the NPV equal to ____
What is Zero
200
Net Operating Income (NOI) / ____ = Accounting Rate of Return (ARR)
What is Initial Investment
200
If a project has a negative net present value of $100,000, the firm will ______
What is reject the offer
200
_____ / Annual Cash Flows = Payback Period
What is Initial Investment
200
Internal Rate of Return > Required Rate of Return, then_____
What is Positive Net Present Value
300
The Accounting Rate of Return is based on ____ instead of cash flow.
What is accounting net income
300
The NPV method compares the present value of a project's future cash inflows to the Present Value of the _____
What is Cash Outflows
300
A major weakness of Payback Period is that the time value of ___ is ignored
What is Money
300
Present Value of Cash Inflows = Present Value of ______
What is Cash Outflows