Terminal cash flow A. An expenditure that the firm has already committed to or made and, therefore, is not relevant for a project's acceptance or rejection decision. Sunk cost B. This cash flow occurs at the end of the life of the project, and it reflects only cash flows that occur at the end of the project's life. Political risk C. The risk of unmet expectations or losses that businesses may realize due to adverse government action or inaction in macroeconomic or social policy. Stand-alone risk D. Cash flows expected to be generated or changed by the investment in a capital project. Incremental cash flows E. The risk exhibited by a firm, and an asset, if it was the only asset in the firm's portfolio