Chapter 25 - Accounting

0.0(0)
Studied by 0 people
call kaiCall Kai
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
GameKnowt Play
Card Sorting

1/13

encourage image

There's no tags or description

Looks like no tags are added yet.

Last updated 5:54 PM on 5/4/26
Name
Mastery
Learn
Test
Matching
Spaced
Call with Kai

No analytics yet

Send a link to your students to track their progress

14 Terms

1
New cards

Cash payback period

investment ÷ net annual cash

2
New cards

Payback method/disadvantage

ignores time value of money

3
New cards

If payback > useful life

investment not recovered

4
New cards

Payback advantage

easy to compute and understand

5
New cards

Discount rate

required rate of return

6
New cards

Primary cash flow method

Net present value

7
New cards

Negative NPV

reject project

8
New cards

Positive NPV

accept project

9
New cards

Zero NPV

acceptable project

10
New cards

High discount rate

lowers NPV

11
New cards

Profitability index

present value ÷ investment

12
New cards

Internal rate of return

rate where NPV = 0

13
New cards

Annual rate of return

based on net income (not cash)

14
New cards

Average investment

(initial + salvage) ÷ 2