• Acceptance of a capital budgeting project contingent on the acceptance of another project.

 Embedded terms in definition
 Capital budgeting
Capital budget
 Referenced Terms
 Annuity: Fixed number of identical cash flows that start one period from today. Typically, annuity products are used to provide income in retirement.Is an insurance product which comes in two basic forms: fixed and variable. The fixed version can make a lump sum or periodic lifetime payments to the annuitant. The variable version has a separate account attached to the annuity contract. This type of contract is considered a security because it is Dependent on equities and its total value is subject to fluctuate due to market risk. There are many annuity varieties. Some are: Annuity Certain, Annuity Due, Deferred Annuity, Fixed Annuity, Life Annuity, Ordinary Annuity, Perpetuity, and Variable Annuity. Also, see Interest Impact on Present Value of Ordinary Annuity of 1 Per Period.A regular periodic payment made by an insurance company to a policyholder for a specified period of time.A finite stream of equal and periodic (regular) cash flows. These cash flows can be inflows of returns earned on investments or outflows of funds invested to earn future returns.(1) A series of periodic payments. (2) A contract under which an insurance company promises to make a series of regular payments to a named individual for life.

 Coefficient of determination: A measure of the goodness of fit of the relationship between the Dependent and independent variables in a regression analysis; for instance, the percentage of variation in the return of an asset explained by the market portfolio return.

 Dividend valuation model: Abbreviated DVM. The value of common shares is Dependent upon the sum of the present value of the dividends received over an infinite time horizon.

 Lag: Payment of a financial obligation later than is expected or required, as in lead and lag. Also, the number of periods that an inDependent variable in a regression model is held back in order to predict the dependent variable.

 Multiple regression: The estimated relationship between a Dependent variable and more than one explanatory variable.

 Related Terms
 Path dependent
Path dependent option

<< Denomination Depletion >>

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