Examlex
Which of the following is/are true and recommended with regard to license agreements?
NPV
Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the net difference between present value of cash inflows and outflows over a period.
IRR
Stands for Internal Rate of Return, a metric used in financial analysis to estimate the profitability of potential investments.
Scenario Analysis
A process of analyzing possible future events by considering alternative possible outcomes (scenarios).
Decision Tree Analysis
A graphical representation that uses branching methods to illustrate every possible outcome of a decision, helping to choose the best option.
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