EGR-PT_Group13

2. It is a fact that money makes money. This concept explains the change in the amount of money over time for both owned and borrowed funds.
5. For a specified MARR, determine a measure of worth for net cash flow series over the life or study period.
7. Expected trade in, market, or scrap value at the end of the estimated life or the study period.
8. Capital (money) that is lost and cannot be recovered.
12. Variation from an expected, desirable, or predicted value that may be detrimental to the product, process, or system.
13. CR is the equivalent annual amount an asset or system must earn to recover the initial investment plus a stated rate of return.
16. Include support functions, utilities, management, legal, taxes, and the like, and are more difficult to associate with a specific product or process.
17. (MARR) A reasonable rate of return established for the evaluation of an economic alternative.
19. The difference between the cash inflow and cash outflow.

1. Revenues are cash inflows and carry a positive (+) sign; expenses are outflows and carry a negative (−) sign.
3. The flow of money into and out of a company, project, or activity.
4. Primarily human labor, machines, and materials associated with a product, process, system, or service.
5. Amount of time before recovery of the initial capital investment is expected.
6. Activities have added worth to a product or service from the perspective of a consumer, owner, or investor who is willing to pay more for an enhanced value.
9. A forgone opportunity caused by the inability to pursue a project.
10. The interest rate incurred to obtain capital investment funds. COC is usually a weighted average that involves the cost of debt capital (loans, bonds, mortgages) and equity capital (stocks and retained earnings).
11. The cost of borrowing money or the reward for saving it.
14. Expressed as a percentage per time (% per year), is an increase in the amount of money required to purchase the same amount of goods or services over time.
15. For a single project, the value of a parameter that makes two elements equal, e.g., sales necessary to equate revenues and costs.
18. A combination of the time value of money and interest rate that makes different sums of money at different times have equal economic value.