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Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the total value of its future cash flows discounted back to their present value.
Nominal Rate
The interest rate stated on a loan or investment agreement before any adjustment for inflation or other factors.
Inflation Rate
The percentage increase in the general level of prices for goods and services in a country over a period of time.
Real Rate
The Real Rate refers to the interest rate adjusted for inflation, representing the true cost of borrowing or the true return on investment.
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