Define the risk-adjusted cost of capital

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Reference no: EM132812651

Problem - Define the following terms:

a. Incremental cash flow; sunk cost; opportunity cost; externality; cannibalization

b. Stand-alone risk; corporate (within-firm) risk; market (beta) risk

c. Risk-adjusted cost of capital

d. Sensitivity analysis; base-case NPV

e. Scenario analysis; base-case scenario; worst-case scenario; best-case scenario

f. Monte Carlo simulation

g. Replacement chain (common life) approach; equivalent annual annuity (EAA) method

Reference no: EM132812651

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