Capital Budgeting Basics

6. The allocation of the cost of a tangible asset over its useful life, reflecting its decrease in value over time.
9. The current value of future cash flows, discounted at the appropriate rate.
11. The process of creating a plan to spend money, ensuring that resources are allocated efficiently.
13. The process of determining the present value of future cash flows by applying a discount rate.
15. The process of using returns from an investment to purchase additional assets or investments.
16. The assessment of whether an investment is practical and financially viable.

1. The gains or losses generated by an investment over a period of time.
2. The ________ rate of return is the discount rate where the NPV of cash flows is zero.
3. The detailed examination of the elements or structure of something.
4. The ability of an investment to generate earnings or returns over its costs.
5. The ease with which an asset can be converted into cash without affecting its market price.
7. The movement of money into and out of a business, representing income and expenses.
8. The type of accounting that is internal, proprietary, and future-focuseded.
10. Relating to the production, distribution, and consumption of goods and services.
12. The "money" in the business in cash and other assets.
14. Long-term commitments of money or capital to purchase assets with the expectation of generating future returns.