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book rate of return	Accounting income divided by book value. Also called accounting rate of return.
capital rationing	Limit set on the amount of funds available for investment. (See page(s) 226)
discounted payback	The time until discounted cash flows recover the initial investment in the project.
equivalent annual cost	The cost per period with the same present value as the cost of buying and operating a machine. (See page(s) 222)
internal rate of return	Discount rate at which project NPV = 0.
mutually exclusive	Two or more projects that cannot be pursued simultaneously
net present value	Present value of cash flows minus initial investment.
opportunity cost of capital	Expected rate of return given up by investing in a project.
payback period	Time until cash flows recover the initial investment of the project. (See page(s) 210)
profitability index	Ratio of present value to initial investment. (See page(s) 227)