Discussion 6.1

What is project cash flow? Discuss in details its financial importance and value

Discussion 6.2

What is an operating plan?  Discuss in details its financial importance and value.

Assignment # 6.1

Answer all questions:

1. Explain the following terms: incremental cash flow, sunk cost, opportunity cost, externality, cannibalization, and complementary project.

2. What are three types of project risk? explain.

3. What are managerial options?

4. What are strategic options?

5. Define the following terms: project cash flow, accounting income, replacement project, scenario analysis, project cost of capital.

6. Explore the website of Federal Reserve and write 2-3 pages on as to what info you found on the website. Explore different tabs on the website i.e. about the fed, monetary policy, news & events, supervision & regulation, payment systems, economic research, consumer & communities etc.

Website address:     www.federalreserve.gov