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question 17

Short Answer

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Definitions:

Net Present Value

Net Present Value (NPV) is a financial measurement that calculates the current value of expected future cash flows from an investment, adjusted for time and interest.

Average Accounting Return

A financial ratio that calculates the average annual income from an investment compared to its initial cost.

Required Rate Of Return

The minimum return an investor expects to receive on an investment, taking into account its risk level.

Cash Flows

The net amount of cash and cash-equivalents moving into and out of a business.