Word Definition

Investment Appraisal To evaluate project

based of financial
viability

Capital Money or assets

available for an
investment

Nominal Nominal refers to their

unadjusted rate, value or
current price without
taking elements such as
inflation, seasonality,
loan fees, interest
compounding or other
factors into account
Inflation The rate at which the
price of goods are
increasing.

Breakeven Point where profit and

costs are equal

Equity The difference between

assets and liabilities
Liability A debt or asset
belonging to another
person or company
Asset An object or item own by
a person or business
Cost of Capital A percentage added to
the cost of a project to
account for the cost of
acquiring funds for a
project. Adding a cost of
capital enables the
evaluation of whether a
project is viable in terms
of it rate of return.