Match the Term with Its Definition

question 12

Multiple Choice

Match the term with its definition.
-A capital budgeting technique that compares expected average annual after-tax profits to the average book value of an investment

• A)accounting return on investment technique
• B)capital budgeting analysis
• C)discounted cash flow (DCF) techniques
• D)internal rate of return (IRR)
• E)net present value (NPV)
• F)payback period technique
• G)pledged accounts receivable

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Definitions:

Rental Income

Income received from leasing out property or other real estate assets.

Property Taxes

Taxes paid by property owners based on the assessed value of their real estate, usually levied by local governments.

Total Return

A measure of the overall return on an investment, including both capital gains and income (like dividends or interest), over a specific period.

Property Taxes

Levies imposed by local governments on real estate properties, calculated based on the property's value.