What Does It All Mean?

Corey Bell

* After-tax cost: The cost of a financing decision figured after-tax.

* Opportunity cost: The return forgone on an investment when an alternative investment is chosen.

* Present value and future value: The comparison of the value of money today vs. the value of that money in the future, i.e. what will a dollar today be worth in five years?

* Tax position: This is specific to each company and refers to the company's current tax situation. Things to think about when determining your position are marginal tax rate, alternative minimum tax, depreciation and the types of deductions your company is taking.

* Time value of money: The value of money over time. Money has the ability to earn interest over time.