Term
| dollar expenditures or dollar receipts that are the direct result of a particular decision |
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| financial performance based on accounting rules |
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| reduction in the value of an asset |
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| the reduction in the value of certain intangible assets |
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| the reduction in the value of certain assets, such as natural resources, as they are used |
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| costs that have already been incurred and shouldn't effect any future decisions |
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| hidden but relevant costs or benefits that should be factored into cash flow |
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| the difference between current assets and current liabilites |
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| the first phase of a capital budgeting analysis, which details the project's capital investment |
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| the second phase in a capital budgeting analysis, which details the project's inflows and outflows throughout its life |
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Definition
| long-term cash flow phase |
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| the third phase of a capital budgeting analysis which details the cash flows associated with the project's end |
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| the value of a capital investment when the project is terminated |
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| the dollar amount of an asset that is depreciated through time |
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| accounting rules developed to simplify the depreciation process for tax purposes. It's the double declining method where its depreciated more in beginning than end. its really high in year 2 |
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Definition
| MACRS - modified accelerated cost recovery system |
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Term
| the potential for managers to base on their analysis on rosy or optimistic forecasts. Examples include high sales projections and/or low cost projections |
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Term
| errors in revenues and costs, either too high or too low. __________ reflects the fact that future events are uncertain and that actual outcomes may differ from expected outcomes |
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| a technique of isolating factors NPV is most sensitive to |
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