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Figure 22-3. The left-hand graph shows a short-run aggregate-supply (SRAS) curve and two aggregate-demand (AD) curves. On the left-hand diagram, Y represents output and on the right-hand diagram, U represents the unemployment rate.
-Refer to Figure 22-3. Assume the figure charts possible outcomes for the year 2018. In 2018, the economy is at point B on the left-hand graph, which corresponds to point B on the right-hand graph. Also, point A on the left-hand graph corresponds to A on the right-hand graph. The price level in the year 2018 is
Net Cash Flows
The difference between a company’s total cash inflows and outflows over a specific period, indicating its ability to generate cash.
Residual Value
Residual value is the estimated amount that an asset will be worth at the end of its useful life.
Time Value
The notion that having money right now is more valuable than receiving the same amount later, owing to the earning potential it carries.
Capital Investment Analysis
The process of evaluating and comparing potential investments or projects to determine their expected returns and the allocation of capital.
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