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Capital Budgeting
The process of evaluating and selecting long-term investments compatible with the firm's goal of wealth maximization.
NPV
Short for Net Present Value, which is a financial metric used to evaluate the profitability of an investment or project, considering the time value of money.
IRR
Internal Rate of Return - a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.
Salvage Value
The estimated residual value of an asset at the end of its useful life, often considered in depreciation calculations and asset disposal decisions.
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