Match each capital budgeting method
Exercise and reference answers
- Matching pairs
- Left
- Payback
- Right
- Time to recoup the outlay
- Left
- ARR
- Right
- The other non-time method
- Left
- NPV
- Right
- Discounts the cash flows
- Left
- IRR
- Right
- The other time value method
- Instructions
- Tap a method on the left, then tap its description on the right.
Explanation
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 11 'Capital Budgeting Decisions'_