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Completion Statements Fill in the blank(s) to complete each statement. 1. The __

ID: 2420575 • Letter: C

Question

Completion Statements

Fill in the blank(s) to complete each statement.

1.   The ___________________________________ method of capital budgeting is based on income rather than cash flows.

2.   The discount rate that makes the net present value of a project equal to zero is called the ______________________________________.

3.   In a capital-budgeting project, the investment required for accounts receivable and inventories is called _______________________________.

4.   (Appendix) ________________________ is the decline in the general purchasing power of the monetary unit.

Explanation / Answer

1) Average Rate of Return Method

2) Internal Rate of Return ( IRR )

3) Working Capital

4) Inflation

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