The Cause of Loss Is an Important Element of the Business

question 12

True/False

The cause of loss is an important element of the Business Impact Analysis.

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Definitions:

Rate of Inflation

The measure of the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Net Present Value

The present value of cash flows minus the present value of cash outlays, used in capital budgeting to assess the profitability of an investment or project.

Discount Rate

Rate used to determine the value today of a dollar received in the future.

Capital Costs

The fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or services.