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. Concept or Definition Term The risk that is measured by the project's beta coefficient Market risk Within-firm risk Corporate risk Stand-alone risk A method to determine market risk by using the betas of single-product companies in a given industry Pure-play method Market method Stand-alone method Speculation method A computer-generated probability simulation of the most likely outcome, given a set of probable future events Scenario analysis Vegas modeling Monte Carlo simulation Pure-play recreation A measure of the project's effect on the firm's earnings variability Management risk Stand-alone risk Corporate (within-firm) risk Market risk The most likely scenario in a capital budgeting analysis Best-case scenario Upside scenario Worse-case scenario Base-case scenario The owner of Cafe Bakka is considering investing in new point-of-sale technology. He spent $10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,000, but it will dramatically improve the speed at which his counter staff will be able to take orders; it will also reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing his capital budgeting analysis whether to determine or not to purchase the new point-of-sale technology? He should include half of the cost of the current point-of-sale system when evaluating the cost of the new point-of-sale system. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale system