Examlex
Which of the following tools did Adam Smith argue provided a reasonable way to address normative questions objectively?
Required Return
The minimum amount of profit or gain an investor expects to achieve from an investment to make it worthwhile.
Net Present Value Method
A financial modeling technique that evaluates the profitability of an investment by discounting future cash flows to their present value and subtracting the initial investment.
Cash Flows
The total amount of money being transferred into and out of a business, often analyzed to assess the financial health of an organization.
Annual Return
The percentage of profit or loss on an investment over a one-year period.
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