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.

Lecture 3 and 4
Investment Bond A life insurance policy
where a sum of money
is invested into several
different funds which
allow withdrawals of
around 5%

Risk Situation leading to

exposure to danger
Reward To receive something
in recognition of
performance

Compensation To receive money or

something in
recognition of loss or
damage or effort

Corporate Relating to a large

company or group

Construction the action of building

something, typically a
large structure
Project A temporary activity
requiring a
collaborative effort to
achieve an aim

Benchmark A point of reference

against which other
things are compared