Capital Budget
List all of the projects that a company plans to undertake during the
next period
Capital Bugeting
The process of analyzing investment opportunities and deciding which
ones to accept
Incremental earnings
The amt by which a firm's earnings are expected to change as a resul...
✓ NI plus after-tax interest expense, equivalently after-tax EBIT
Marginal corporate tax rate
✓ The tax rate a firm will pay on an incremental dollar of pretax income
Opportunity cost
✓ The value a resource could have provided in its best alternative use
Project Externalities
✓ Indirect effects of a project that may increase or decrease the profits
of other business activities of a firm
Cannibalism
✓ When sales of a firm's new product displace sales of one of its existing
products
Sunk cost
✓ Any unrecoverable cost for which a firm is already liable
Overhead expenses
Master01 | October, 2024/2025 | Latest update
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamArsenal. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.51. You're not tied to anything after your purchase.
