Business Mathematics in Canada |

Student Centre | Instructor Centre | Information Centre | Home

Business Mathematics in Canada, 4/e

F. Ernest Jerome

Business Investment Decisions

Below are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.

Capital rationing	The circumstance where there is a limit on the total amount of capital funds that a firm may invest during a period. (See page 671.)



Cost of capital	The average of the rates of return required by a firm's various sources of financing. (See page 660.)



Internal rate of return	The discount rate that makes the net present value of an investment's cash flows equal to zero. (See page 679.)



Mutually exclusive projects	Alternative capital investments, any one of which will substantially satisfy the same need or purpose. (See page 672.)



Net present value	The present value of cash inflows minus the present value of cash outflows (See page 666.)



Payback period	The number of years it will take to recover an initial investment outlay from the investment's future operating profits. (See page 687.)

2003 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.