Examlex
What is inherent risk?
Sunk Cost
A cost that has already been incurred and cannot be recovered, and should not affect future investment or spending decisions.
Capital Budgeting
The process used by businesses to evaluate and prioritize investments in long-term assets and projects based on their potential returns.
NPV
Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period of time.
IRR
Stands for Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments.
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