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Net Present Value
A financial metric that calculates the current value of a series of future cash flows by discounting them back to the present time.
Interest Rate
The part of a loan that accrues interest for the borrower, customarily denoted as a yearly percentage of the loan's outstanding sum.
Inflationary Premium
The portion of investment returns or interest rates that compensates for expected inflation, protecting the purchasing power of money.
Time Preference
The degree to which individuals value present goods or satisfaction over future goods or satisfaction.
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