Funding for Specific Projects That Are Added by Members of Congress

question 2

Multiple Choice

Funding for specific projects that are added by members of Congress to appropriation bills, usually without oversight or public debate, is known as

• A) earmarks.
• B) riders.
• C) budget requests.
• D) presidential funding priorities.
• E) log projects.

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Definitions:

Cost Of Capital

The rate of return that a company must offer investors to finance its assets, often used in making investment decisions.

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project or making a financial decision.

Initial Outlay

The initial investment amount or the upfront cost required to start a project or investment.

Sunk Cost

A cost associated with a project expended prior to making the decision to undertake that project (for example, the cost of research into the idea). Since sunk funds are already gone, they cannot alter future costs or benefits, and should not be included in the analysis leading to a decision.