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In General, All Theories Share Which Two Features

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In general, all theories share which two features?


Definitions:

Capital Budgeting

The process by which a business determines and evaluates potential expenses or investments that are significant in amount.

Project Cash Flows

Refers to the net amount of cash being transferred into and out of a project, considering all revenues, expenses, and capital costs over its life.

Risk

In finance, risk is the potential for financial loss or the variability in the returns of an investment.

Principal

The original amount of money loaned or invested, before any interest or profit is added.

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