END 11 DEFINITIONS) Flashcards
12) Payback
The Length of Time a project will take to recover the Initial Investment Cost by summing the Net Cash Flows
13) Simple Payback Method
A Payback Method that utilises an Equation given the Average Annual Net Cash Flow is Constant
14) Decision Trees
A Decision Making tool that shows the possible outcomes of an Investment so that the most Profitable Investment can be Identified
15) Expected Monetary Rewards
The Value Gained from making an Investment Decision
16) Probabilities
The likelihood of Possible Outcomes happening
17) Critical Path
The Tasks involved in an Investment, which if Delayed, could Delay the Investment
18) Critical Path Analysis (CPA)
The Process of Planning the Order of Tasks in an Investment Project in order to discover the Most Efficient way of completing the Project
19) Earliest Start Time
How Quickly a Task in an Investment Project can Begin
20) Free Float
The Time by which a Task can be Delayed without affecting the Project Completion Time
21) Latest Finish Time
The Latest Time a Task in a Project can finish without Delaying the Whole Project
22) Network Diagram
A Chart showing the Order of Tasks involved in completing an Investment Project, containing information about the Times Taken to complete the Project
