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MATCHING
Match each description with the item below.
-Lyndon Johnson
Net Present Value
A financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.
Compound Interest
Interest earnings calculated on the base principal along with any interest that has previously accumulated from past periods on that principal.
Straight-Line Depreciation
A method of calculating the depreciation of an asset which spreads the cost evenly across the useful life of the asset.
Average Rate of Return on Investment
An investment's return expressed as an annualized percentage, calculating how much an investment has gained compared to its initial cost.
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