Financial terms

3. Equivalent annual amount an asset or system must earn to recover the initial investment plus a stated rate of return.
4. 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. Support functions, utilities, management, legal, taxes, and the like, more difficult to associate with a specific product or process.
7. Primarily human labor, machines, and materials associated with a product, process, system, or service.
8. For a single project, the value of a parameter that makes two elements equal, e.g., sales necessary to equate revenues and costs.
12. For a specified MARR, determine a measure of worth for net cash flow series over the life or study period.
14. Activities that add worth to a product or service from the perspective of a consumer, owner, or investor.
16. A forgone opportunity caused by the inability to pursue a project.
19. Expressed as a percentage per year, it is an increase in the amount of money required to purchase the same goods or services over time.
20. Expected trade-in, market, or scrap value at the end of the estimated life or study period.

1. Cash inflows and carry a positive (+) sign; expenses are outflows and carry a negative (-) sign.
2. Amount of time before recovery of the initial capital investment is expected.
6. The flow of money into and out of a company, project, or activity.
9. A combination of the time value of money and interest rate that makes different sums of money at different times have equal economic value.
10. A reasonable rate of return established for the evaluation of an economic alternative.
11. The cost of borrowing money or the reward for saving it.
13. The difference between the cash inflow and cash outflow.
15. The interest rate incurred to obtain capital investment funds. Usually a weighted average of debt and equity capital.
17. Variation from an expected, desirable, or predicted value that may be detrimental to the product, process, or system.
18. Capital (money) that is lost and cannot be recovered.