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Match each appraisal to its output

Exercise and reference answers

Matching pairs
  1. Left
    Rate of return
    Right
    Average income over average investment
  2. Left
    Cash payback
    Right
    Years needed to recover the asset cost
  3. Left
    Net present value
    Right
    Discounted cash flows less the cost
  4. Left
    Present value
    Right
    A future amount brought back to today
  5. Left
    Future value
    Right
    A present amount grown at an interest rate
  6. Left
    Compounding
    Right
    Earning interest on interest already earned
Instructions
Tap a method, then tap the number or idea it produces.

Explanation

_Source: Jonick, Principles of Managerial Accounting, section 9.8 Capital Investment Analysis_
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