Define risk-adjusted discount rate-project cost of capital

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Reference no: EM132063434

Define each of the following terms:

a. Project cash flow; accounting income

b. Incremental cash flow; sunk cost; opportunity cost; externality; cannibalization;

expansion project; replacement project

c. Net operating working capital changes; salvage value

d. Stand-alone risk; corporate (within-firm) risk; market (beta) risk

e. Sensitivity analysis; scenario analysis; Monte Carlo simulation analysis

f. Risk-adjusted discount rate; project cost of capital

g. Decision tree; staged decision tree; decision node; branch

h. Real options; managerial options; strategic options; embedded options

i. Investment timing option; growth option; abandonment option; flexibility option

Reference no: EM132063434

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