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Project Profitability Index
A financial metric used to determine the relative profitability of a project, calculated by dividing the present value of future expected cash flows by the initial investment.
Present Value
The present value of a future amount of money or series of cash inflows, considering a particular rate of interest.
Cash Inflows
Money received by a business from its operational, investing, and financing activities.
Discount Rate
The rate utilized in calculating the present value of anticipated future cash flows in discounted cash flow analysis.
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