
[removed] IRR, because all reinvestment of funds occurs at the rate of the cost of capital and because it takes into consideration the relative size of the initial investment. 
[removed] A basic objective underlying capital budgeting is to select assets that will earn a satisfactory return. 
[removed] Modified internal rate of return (MIRR). 
[removed] That generates cash flows for the longer period of time. 
[removed] Breakeven point for the project. 
[removed] It is easy to calculate and comprehend. 
[removed] $40,000 for wages and a net cash inflow of $60,000 for depreciation expenses. 
[removed] Failure to consider all relevant costs. 
[removed] Internal rate of return (IRR) of the project. 
[removed] Opportunity cost from lost sales. 
[removed] Variable manufacturing cost of the component. 
[removed] Value chain analysis. 
[removed] 4 years. 
[removed] Weightedaverage cost of capital (WACC). 
[removed] Profitability index. 
[removed] A longterm planning horizon is assumed. 
[removed] Expansion option. 
[removed] Activitybased costing. 
[removed] Cash flows only. 
[removed] Are frequent. 
[removed] A pessimistic estimate in a typical scenario analysis. 
[removed] Payback period. 