Financial Management: Core Concepts, Third Edition

Key Terms

• capital budgeting, p. 257

• crossover rate, p. 276

• discounted payback period, p. 261

• equivalent annual annuity  (EAA), p. 267

• hurdle rate, p. 270

• internal rate of return (IRR), p. 269

• modified internal rate of return  (MIRR), p. 278

• mutually exclusive projects, p. 264

• net present value (NPV), p. 263

• NPV profile of a project, p. 292

• payback period, p. 258

• profitability index (PI), p. 280