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Explain how a mountain range, located near the ocean, can lead to the formation of a desert on the leeward side of the mountain.
Cost of Capital
Cost of capital represents the return rate an entity must pay to its stakeholders in order to justify the use of capital in the business.
Initial Outflow
The initial cash expenditure required to undertake an investment or project.
Average Accounting Return
A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.
Straight-Line Method
An accounting method for allocating the cost of an asset evenly over its useful life.
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