Across
- 2. A combination of the time value of money and interest rate that makes different sums of money at different times have equal economic value.
- 5. The cost of borrowing money or the reward for saving it.
- 8. Capital (money) that is lost and cannot be recovered.
- 11. Costs primarily associated with labor, machines, and materials for a product or service.
- 13. The point where two elements, such as revenue and cost, are equal.
- 16. A reasonable rate of return established for evaluating an economic alternative.
- 17. The equivalent annual amount an asset must earn to recover the initial investment plus a stated rate of return.
- 18. An expected, desirable, or predicted value that may be detrimental to a product, process, or system.
- 19. The flow of money into and out of a company, project, or activity.
- 20. The amount of time before the initial capital investment is recovered.
Down
- 1. Expected trade-in, market, or scrap value at the end of an asset's estimated life.
- 3. A forgone opportunity caused by the inability to pursue a project.
- 4. An increase in the amount of money required to purchase the same goods or services over time.
- 6. Determines a measure of worth for net cash flow series over a study period.
- 7. Additional worth created for a product or service that customers are willing to pay for.
- 9. 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.
- 10. Cash inflows that carry a positive (+) sign.
- 12. The interest rate incurred to obtain capital investment funds.
- 14. Costs related to support functions, utilities, management, legal, taxes, and similar expenses.
- 15. The difference between cash inflow and cash outflow.