To use the glossary, simply click on the first letter of
the term of interest below:
- In economic equations, a Present lump sum of money.
- P or P'
- In economic equations, a total amount of money that flows continuously and uniformly during the present period.
- Payback Period
- A criteria for investment decisions; the number of periods of time required for an investment's cost savings and revenues to equal the amount of the investment with no interest. See also discounted payback period.
- Periodic Continuous Cash Flow
- A recurring cash flow happening evenly throughout each period, over a range of periods. For example, the depletion value in an operating mine decreases on the basis of a continuous cash flow as ore is removed daily. See also Discrete Periodic Cash Flow, Discrete Single Cash
Flow, Discrete Continuous Cash Flow and Periodic Gradient Cash Flow.
- Periodic Gradient Cash Flow
- A recurring cash flow happening each period. The amount of the cash flow increases as a gradient series: End Year 1: $x, end year 2: $2x, end year 3: $3x and so on. Accumulated depreciation is an example. See also Discrete Periodic Cash Flow, Discrete Single Cash Flow, Discrete Continuous
Cash Flow and Periodic Continuous Cash Flow.
- Present Worth of Annual Costs (PWAC)
- An economic evaluator meaningful only when the rules and assumptions of a cost comparison economic analysis have been strictly adhered to. In addition, the degree of risk should be similar for each alternative. PWAC can also provide a profitability comparison under the same
rules, thanks to the MAR component and consideration.
- Present Worth of Annual Costs.
- In this glossary, Plant refers to units under study. Although really a utilities-type term, its concept is equally applicable regardless of what one is costing, things as diverse as light bulbs, underground zinc mines, levies or railroad lines.
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