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break-even analysis	Analysis of the level of sales at which the company breaks even. (See page(s) 281)
capital budget	List of planned investment projects. (See page(s) 276)
decision tree	Diagram of sequential decisions and possible outcomes. (See page(s) 289)
degree of operating leverage (DOL)	Percentage change in profits given a 1 percent change in sales. (See page(s) 287)
economic break-even	Minimum level of sales needed to cover all costs including the cost of capital.
fixed costs	Costs that do not depend on the level of output. (See page(s) 279)
operating leverage	Degree to which costs are fixed. (See page(s) 287)
real options	Options to invest, modify, or dispose of a capital investment project. (See page(s) 291)
scenario analysis	Project analysis given a particular combination of assumptions (See page(s) 280)
sensitivity analysis	Analysis of the effects of changes in sales, costs, and so on, on project profitability. (See page(s) 278)
simulation analysis	Estimation of the probabilities of different possible outcomes, e.g., from an investment project. (See page(s) 281)
variable costs	Costs that change as the level of output changes. (See page(s) 279)