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