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Below are some definitions and key terms that are used when studying cash flow estimation and risk analysis. Match the definition with the correct term.

Below are some definitions and key terms that are used when studying cash flow estimation and risk analysis. Match the definition with the correct term. Investments in buildings, equipment, and working capital needed for a project are examples of these. A cash outlay that has already been incurred and that cannot be recovered regardless of whether the project is accepted or rejected. The value a resource could have provided in its best alternative use. The effects of a project on other parts of the firm or the environment. The situation when a new project reduces cash flows that the firm would otherwise have had. Percentage change in NPV resulting from a given percentage change in an input variable, other things held constant. A risk analysis technique in which "bad" and "good" sets of financial circumstances are compared with a most likely, or base-case, situation. [Choose ] [Choose ] [Choose ] [Choose ] [Choose ] [Choose ] [Choose ] >

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