1. Concepts used in cash flow estimation and risk analysis You can come across different situations in your life where the concepts from capital budgeting will help you in evaluating the situation and making calculated decisions. Consider the following situation: The following table contains five definitions or concepts. Identify the term that best corresponds to the concept or definition given. Term Concept or Definition A computer generated probability simulation of the mostly outcome, given a set of probable future events The most likely scenario in a capital budgeting analysis A measure of the project's effect on the firm's earnings variability A method to determine market risk by using the beas of single product companies in a glven Industry The risk that is measured by the project's beta confident Marston Manufacturing Co owns warehouse that it is not currently using. It could sell the warehouse for $300,000 or use the warehouse in a new project. Should arston Manufacturing Co. Include the value of the warehouse as part of the initial investment in the new project? Yes, because the firm could sell the warehouse if it didn't use it for the new project No, because the company will still be able to sell the warehouse once the project is complete No, because the cost of the warehouse is sunk cost. A cell phone company recently give customers the ability to buy applications that they can download to their cell phones. Allowing customers to use these applications increased cell phone sales. This is an example of terally