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TABLE 12-11
Parents complain that children read too few storybooks and watch too much television nowadays. A survey of 1,000 children reveals the following information on average time spent watching TV and average time spent reading storybooks
-Referring to Table 12-11, how many children in the survey spent less than 2 hours watching TV and no more than 2 hours reading storybooks on average?
NPV
Net Present Value, a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.
IRR
Internal Rate of Return; the discount rate that makes the net present value of all cash flows from a particular project equal to zero.
Time Value of Money
The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.
Payback Period
The length of time it takes for an investment to generate cash flows sufficient to recover the initial investment cost.
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