g. The amount of money today that is consider equivalent to the cash flows expected to take place in the future. h. The required rate of return used by an investor to discount future cash flows to their present value. . Often an investment's final cash flows to be considered in discounted cash flow analysis.
g. The amount of money today that is consider equivalent to the cash flows expected to take place in the future. h. The required rate of return used by an investor to discount future cash flows to their present value. . Often an investment's final cash flows to be considered in discounted cash flow analysis.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
26.1 (g, h, i)
Transcribed Image Text:g. The amount of money today that is considered equivalent to the cash flows expected to take
place in the future.
h. The required rate of return used by an investor to discount future cash flows to their present
value.
i. Often an investment's final cash flows to be considered in discounted cash flow analysis.
Transcribed Image Text:3,
The following are 10 technical accounting terms introduced or emphasized in this chapter.
Net present value
Capital budgeting
Incremental analysis
Discount rate
Payback period
Present value
gy
Sunk cost
Salvage value
Return on average investment
Capital budget audit
Each of the following statements may (or may not) describe one of these technical terms. For each
statement, indicate the accounting term described, or answer "None" if the statement does not cor-
rectly describe any of the terms.
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