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Trace elements
Reinvestment Assumption
The theory that cash flows will be reinvested at a constant rate, often used in financial modeling.
Cost of Capital
The rate of return that a business must achieve in order to generate value, representing the opportunity cost of investing capital in a specific business rather than in an alternative venture.
Average Return
A statistical measure representing the mean outcome or yield from an investment over a given period of time.
NPV
Net Present Value; a calculation used to determine the value of an investment by subtracting the present values of cash outflows (including initial cost) from the present values of cash inflows over a period of time.
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