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Annual Net Cash Flows
The amount of cash that a company generates or uses in a given year after all income and expenses are accounted for.
Average Rate of Return
A financial ratio that represents the average net profit or return expected on an investment over its lifetime, expressed as a percentage.
Straight-Line Depreciation
A method of calculating the depreciation of an asset, dividing its cost minus salvage value by its useful life, resulting in equal annual depreciation expenses.
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.
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