Examlex
Match each definition with the correct word part.
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Net Present Value
Net present value is the difference between the present value of cash inflows and outflows over a period, used to assess the profitability of an investment.
Discount Rate
The interest rate charged to commercial banks and other financial institutions for the loans they take from the Federal Reserve's discount window.
Future Cash Flows
Future cash flows refer to the projected financial gains or expenses a business expects to receive or pay out over a specific period in the future.
Discounted Payback Period
The time required to recover the cost of an investment while considering the time value of money.
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