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Accrual adjustments involve:
Internal Rate of Return Method
A capital budgeting method used to estimate the profitability of potential investments, calculated as the rate that makes the net present value of all cash flows zero.
Present Value Concepts
Financial principles used to determine the current value of future cash flows, taking into account specific rates of return or discount rates.
Net Cash Flows
The difference between a company's cash inflows and outflows within a defined period.
Annuity
A financial instrument that provides a consistent flow of payments to a person, mainly serving as a source of income for people in retirement.
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