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Unformatted text preview: Chapter 6: MATCH THE FOLLOWING 3 Opportunity Costs (1) A decision that was previously made 1 Sunk Costs (2) Cuts away at sales of other items 2 Erosion (3) What you sacrificed in order to make a decision 4 Synergy (4) Promotes the sale of other items 6 Inflation (5) The same basket of goods costs less 5 Deflation (6) The same basket of goods costs more 7 Consumer Price Index (7) A basket of goods 1 1.50 100 101 Against Against 1 1 Against 1 Against Additional Things to Review • Profitability index • Please read the pros/cons of the different analysis methods in the book. • Look up the operating cash flow definitions and understand how to apply them to problems....
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- Fall '11
- Net Present Value, Operating cash flow, subsequent cash flows, multiple IRR