To use the glossary, simply click below on the first letter of the term of interest:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

B-C

Capital

1. One of the cash flows as part of an economic study or a comparative cost study.

2. The monetary resources to establish and maintain a project.

3. Wealth that may be used to economic advantage.

Capital Cost Allowance (CCA)

A method of depreciation for income tax purposes. Different types of goods are assigned various tax classes, each which has an assigned depreciation (or CCA) rate and life. Compare with CLADR and ADR.

Capital Recovery

The process of repaying the net investment that has been put into a project. Includes net salvage, interest and principal repayment.

Cash Flow

The real dollars passing into and out of the treasury with regard to a financial venture. Note that depreciation expense is not a cash flow as it is an internal accounting transfer and is not paid to anybody.

CCA

Capital Cost Allowance.

CLADR

Class Life Asset Depreciation Range.

Class Life Asset Depreciation Range (CLADR)

A set of ranges of useful depreciation lifetimes for various types of assets as established by the US IRS.

Comparative Cost Study

A type of economic study and a tool that indicates relative costs among alternatives. In a Comparative Cost Study, revenues are constrained to be equal for each plan under consideration.

Cost of Debt

An organization's cost of debt used in cost studies. This represents interest paid on new bonds and similar instruments. Therefore, a marginal rate is used rather than a composite rate.

Cost of Equity

For organizations issuing stock, an estimate of the rate of return required by the shareholders for investment in common stock. This cost is based on many aspects within the organization and in the stock market.

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