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What is the relationship between the following compounds?
Depreciable Equipment
Tangible assets used in production or operations that are written off over their useful lives due to wear and tear or obsolescence.
Salvage Value
Salvage value is the estimated resale value of an asset at the end of its useful life, relevant in depreciation calculations.
Discount Rate
The interest rate used to discount future cash flows to their present value.
Payback Period
The time it takes for an investment to generate an amount of income or cash flows to recover the initial capital outlay.
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