Question

Match the words/phrases with its most appropriate description. You may match one word/phrase with more than one description. You may not use all the words/phrases non-simple investment.A another word/phrase for the annual rate of return accumulated cash flow sign test.B on an investment vield.C the interest earned on the unpaid balance of a loan simple investment.D break-even interest rate that equates the present rate of return worth of a project's cash flow outflows to the .present worth of its inflows net present worth F the interest rate charged to the unrecovered internal rate of return. project balance of the investment such that the net cash flow rule of signs.H unrecovered project balance will be zero when the project ends what a company would make if it invested in itself rather than investing that money elsewhere "predicts a maximum number of possible i when the sign of the cash flows changes more than once .

Answer 1

A) Non simple investment = When the sign of cash flows changes more than once.

C) Yield = Another word/phrase for the annual rate of return on an investment.

D) Simple investment = What a company would make if it invested in itself rather than investing that money elsewhere.

E) Rate of return = the interest charged to the uncovered project balance of the investment such that the unrecovered project balance will be zero when the project ends

F) Internal rate of return = Break-even interest rate that equates the present worth of a project's cash flow outflows to the present worth of its inflows.