Drag the tiles to the correct boxes to complete the pairs.

Match the crucial aspects of capital budgeting to their respective descriptions.

replacement

NPV

discount rate

expansion

evaluates a capital Investment

a project to pursue a new

revenue stream

a project to prevent loss of

revenue

used to calculate the time

value of future inflows

used to calculate the time value of future inflows - NPV

a project to pursue a new revenue stream - expansion

evaluates a capital Investment - discount rate

a project to prevent loss of revenue - replacement

Step-by-step explanation:

You bring replacement to an existing practice to prevent losses

NPV is the difference between present value of cash inflows and present of value of cash inflows over a period of time.

You expand the scope of business to bring new sources of revenue

Discount rate is used to analyse present value of future cash flows. This give an idea whether futur cash flows from a prject is worth a capital investment or not.