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Required Return
The minimum rate of return on an investment that is necessary for it to be considered a viable option, taking into account its risk level.
IRR
In capital budgeting, the Internal Rate of Return serves as a tool for estimating the potential returns on investment projects.
Investment
The allocation of resources, usually money, into assets or projects expected to generate future returns or profit.
Profitability Index
A calculation that measures the relative profitability of an investment by dividing the present value of future cash flows by the initial investment cost.
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