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Identify and Briefly Explain the Four Categories of Project Risks

question 77

Essay

Identify and briefly explain the four categories of project risks.


Definitions:

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid to the lender over a specified period of time.

Present Value

The today's value of money to be received in the future or continuous cash inflows, adjusted for a certain interest rate.

Market Rate

The prevailing price or interest rate for goods or services or loans in an open market.

Natural Gas Reserve

Quantities of natural gas that are discovered and are recoverable under current economic and operating conditions.

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