Inv. appraisal techniques - short answer questions
Define the term 'screening test' (or 'criterion level').
Explain the term 'time value of money'.
Explain what a net present value (NPV) of +$256 at a 20% discount factor tells you about a project.
Outline how a residual value affects the average rate of return.
Explain the meaning of the payback period for an investment and why this might be considered a measure of risk rather than profitability.