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Why do you think the small business administration defines small business differently in some industries?
Net Cash Inflows
The total amount of cash received by a company during a specific period, minus the total amount of cash outflows.
Payback Period
The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.
Discount Rate
The interest rate used to discount future cash flows to their present value, reflecting the time value of money and risk.
Initial Investment
The initial outlay of money required to start a project, purchase an asset, or invest in a business venture.
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