Risk ________ Is a Decision-Making Method That Analyzes the Risk

question 17

Short Answer

Risk ________ is a decision-making method that analyzes the risk (based on assumed known probabilities)associated with different alternatives.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows of a financial instrument, in order to determine its present value.

Salvage Value

The expected end-of-life residual value of an asset.

Net Present Value

Net present value is the calculation to determine the present value of a series of future cash flows minus the initial investment cost, used to assess the profitability of investments.

Net Cash Inflows

The total amount of money received from an investment, project, or business operation, after deducting all associated cash outflows.