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The direct approach is best when ________.
Expected Total Cash Flows
An estimation of all cash inflows and outflows associated with an investment over its expected life, used to gauge its profitability.
Average Rate of Return
A financial ratio indicating the average annual return earned through an investment over its lifetime, expressed as a percentage of the initial investment cost.
Net Income
The total earnings of a company after subtracting all costs and expenses from revenue.
Net Cash Flow
The difference between a company's cash inflows and outflows over a period, indicating overall liquidity.
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