ENGINEERING ECONOMY CROSSWORD

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Across
  1. 4. Value The current worth of future cash flows, adjusted for the time value of money.
  2. 6. Budgeting Evaluating and selecting long-term investment projects.
  3. 10. Period The time it takes to recover the initial investment.
  4. 12. Point The level of sales or production where total costs equal total revenue.
  5. 13. Life The period during which an asset generates benefits.
  6. 16. Flow The movement of money into or out of a project.
  7. 17. Cost The value of the next best alternative foregone when making a decision.
  8. 18. The gradual reduction of a debt over time.
  9. 20. Present Value The difference between the present value of benefits and costs.
Down
  1. 1. Rate The cost of borrowing money or the return on investment.
  2. 2. Cost A cost that cannot be recovered and should not influence decisions.
  3. 3. Analysis Comparing the costs and benefits of different alternatives.
  4. 5. Rate The rate used to calculate present values.
  5. 7. Rate of Return The discount rate that makes NPV zero.
  6. 8. The decrease in value of an asset over time.
  7. 9. Premium Additional return required for taking on risk.
  8. 11. Ratio The ratio of present value of benefits to present value of costs.
  9. 14. Value The value of an investment at a specified point in the future.
  10. 15. A series of equal cash flows occurring at regular intervals.
  11. 19. Value of Money The idea that a dollar today is worth more than a dollar in the future.