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

J

j

In economic equations, effective annual interest rate for continuous compounding.

K-L-M

MACRS

Modified Accelerated Cost Recovery System.

MAR

Minimum Acceptable Revenue or Rate.

MARR

Minimum Acceptable Rate of Return (on capital). The smallest amount of revenue considered acceptable for an organization to undertake a project. Typically, MARR is equal to the cost of capital plus a return. Sometimes referred to as the hurdle rate.

Minimum Acceptable Revenue (MAR)

An assumed project-related revenue that just covers off income taxes, plus exactly realizes an organization's minimum acceptable rate of return on capital or MARR. Such a project can be said to carry its own costs and not be a burden on the organization.

Modified Accelerated Cost Recovery System

An IRS prescribed straight-line depreciation approach.

N-O

N

In economic equations, the Number of periods.

Net Present Value

In an economic study, the present worth of all cash flows including revenue over the study life. When NPV equals zero, the project is break-even for the organization while a negative NPV denotes a loss and positive NPV a profit.

Net Salvage

A cash flow in a comparative or normal economic study relating to the sale of retired property including removal cost.

NPV

Net Present Value, which see.

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