Summary
Highlights
The 'salvage value' is defined as the scrap value of an asset. An 'ordinary annuity' is described as a type of annuity where payments are made at the end of each period, starting from the first. A 'coupon bond' is a bond with attached coupons indicating interest due and its payment date.
The video begins by defining an 'escalatory clause' as a contract provision for adjusting material and labor costs. It then covers 'depreciation recovery' as the present worth of depreciation over an item's economic life, 'gross margin' as gross profit as a percentage of sales, and 'book value' as the worth of property in accounting records. 'Working capital' represents funds needed to maintain a project as a going concern.
Different market situations are explained: 'monopoly' (one seller, many buyers), 'bilateral monopoly' (one buyer, one seller), 'bilateral oligopoly' (few sellers, few buyers), and 'duopsony' (two buyers, many sellers).
The 'law of supply and demand' states that in free competition, the product price equals the value where supply meets demand. The 'rate of return' is the ratio of net income to owner's equity. 'Capitalized cost' of any property is the first cost plus the cost of perpetual maintenance.
The video defines 'power' as the rate of doing work and identifies the Watt (W) as its SI unit, excluding joules. It explains that power delivered by a machine is less than supplied due to friction and defines 'kinetic energy' as the energy of an object due to its motion.