Capital Budgeting

3. A proposal whose primary benefit is that it will lower the firm's operating costs
5. Also known as "Initial start-up capital"
6. Projects with _____ NPV's earn excess returns
8. An annuity with infinite life
11. It is either a single proposal or a collection of depenedent proposals that is economically independent of all other proposals
12. A phase where the company makes the required arrangements to take on the new projects

1. Any action under consideration
2. A phase of capital budgeting process which is often called postcompletion audit
3. Process of determining exactly which assets to invest in and how much to invest
4. A proposal when acceptance of one proposal reduces the cash flows of another proposal
5. 2 proposals are said to be like this if the cash flows from adopting them to gether exceeds the sum of the cash flows
7. It is a proposal when if the acceptance of one proposal has no effect on the cash flows of another proposal
9. The company uses these in actual production of goods and services
10. It refers to long term assetes used in production
13. It measures the number of years required to recover the initial investment