finance 3715 chpt 11

forcasting risk is defined as the possibility that INCORRECT decisions will be made due to ERRONEOUS CASH FLOW PROJECTIONS
scenario analysis is defined as the determinationnpv estimateswhat if questions
analysis of the change in a projects npv when a single variable is changed is called sensitivity
analysis which ocmbines scenario analysis with sensitivity analysis is called simulation
variable costs can be defined as the costs that vary directly with sales
fixed costs: are constantshort run regardlessof quantity of output
the change in revenue that occurs when one more uniot of output is sold is referred to as marginal revenue
change in variable costs that occurs when production is increased by one unit is referred to as marginal costs
by definition, which one of the following must equal zero at the accounting break even point? net income
by definition, which one of the following must equal zero at the cash break even point operating cash flow
which one of the following is defined as the sales level that corresponds to a zero NPV? financial break even
operating leverage is the degree of dependence a firm places on its fixed costs
relationship between the percentage change in operating cash flow and the percentage change in quantity sold? degree of operating leverage
Bell Weather Goods capital rationing
procedure of allocating a fixed amount of funds for capital spending to each business unit is called soft rationing
PC enterprises hard rationing
forecasting risk emphasizes accuracy of the prjected cash flows
Steve scenario analysis
scenario analysis is best suited identifying potential range reasonable outcomes
computation of best case anal

Leave a Reply

Your email address will not be published. Required fields are marked *