Examlex
This type of thermometer has a glass bulb attached to a sealed, graduated tube about 25 cm (10 in.) long. A very small opening, or bore, extends from the bulb to the end of the tube. A liquid in the bulb (usually mercury or red-colored alcohol) is free to move from the bulb up through the bore and into the tube. When the air temperature increases, the liquid in the bulb expands, and rises up the tube. When the air temperature decreases, the liquid contracts, and moves down the tube. Hence, the length of the liquid in the tube represents the air temperature.
Forecasting Risk
The potential for future revenues or earnings to deviate from projected amounts due to variables that affect demand, supply, and pricing.
NPV Estimates
Calculations used to determine the Net Present Value of an investment, forecasting the difference between the present value of cash inflows and outflows.
Operating Leverage
A measure of how revenue growth translates into growth in operating income, indicating the degree to which a company can increase its profits by increasing sales, given its fixed costs.
Scenario Analysis
A process of analyzing possible future events by considering alternative possible outcomes (scenarios), thus helping in the decision-making process.
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