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Why Would a Company Create a Knockoff of a Product

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Why would a company create a knockoff of a product?


Definitions:

Compound Interest

Interest that is computed not only on the original amount deposited or borrowed but also on the interest that has been added to the principal over past periods.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, such as purchasing long-term assets.

Estimated Life

The expected period over which an asset is useful to the owning entity and can generate revenue, used for calculating depreciation.

Residual Value

The estimated salvage value of an asset at the end of its useful life, influencing depreciation calculations.

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