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Discount Rate
The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine the present value of future cash flows.
Present Value
The present worth of a future amount of money or series of cash flows, considering a certain rate of return.
Rate Of Return
A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial cost.
Cash Flows
The net amount of cash being transferred into and out of a business, typically categorized into operating, investing, and financing activities.
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