Examlex
Things that a firm owns that are worth something are classified as
Average Rate of Return
A financial ratio that measures the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.
Present Value Method
An approach to evaluate the current worth of a future cash flow, considering a specific rate of interest or cost of capital.
Capital Investment Analysis
The process of assessing the viability, stability, and profitability of long-term investments to determine their potential impact on the financial health of an entity.
Cash Payback Method
A capital budgeting technique that calculates the time needed to recoup the cost of an investment, based on cash inflows.
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