The following table contains five definitions or concepts. Identify the term that best corresponds to the concept on definition given. Concept or Definition Term A risk analysis technique that measures changes in the internal rate of retum (IRR) and net present value (NPV) as individual variables are changed Creates value for a company because it gives the company the right but not the obligation to take future action to increase its cash flows The cash flow at the end of the life of the project The risk of a project without factoring in the impact of diversification An example of extemality that can have a negative effect on a firm The owner of Cafe Bakka is considering investing in new point-of-sale technology. He spent$10,000 on his current point-of-sale system five years ago. The new point-of-sale technology will cost $25,0DD, but it will dramatically improve the speed at which his counter staff will be able to take orders; it will also reduce the owner's administrative work. How should the owner account for the cost of the current point-of-sale technology when performing his capital budgeting analysis to determine whether or nat to purchase the new point-of-sale technology? O He should ignore the cost of the current point-of-sale system when evaluating the cost of the new O He should include half of the cost of the current point-of-sale system when evaluating the cost of the new O point-of-sale system. point-of-sale system. He should include the cost of the current point-of-sale system as part of the cost of the new point-of-sale A large soft-drink company currently produces regular cola and diet cola. It is considering introducing a new soft drink that tastes like regular cola but has zero calories like the diet cola. The new zero-calorie drink that tastes like regular cola is most likely to produce extemality