An expenditure that the firm has already committed to or made and, therefore, is not relevant for a project$$s acceptance or rejection decision.

This cash flow, which occurs at the end of a project$$s life, reflects the salvage value of any of the project$$s assets, their disposal$-$related tax effects, and the disinvestment of any net working capital investment made at the beginning of the project.

An example of this phenomenon is a project that steals or cannibalizes the customers of other divisions in the company.

A risk analysis computer$-$generated probability simulation of the most likely outcome given a set of probable future events.

The risk of unmet expectations or losses that businesses may realize due to adverse government action or inaction in macroeconomic or social policy.