Examlex
Which is the distribution of financial resources among competing groups?
Net Present Value
A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.
Present Value Method
A financial calculation that determines the current worth of a future sum of money or stream of cash flows given a specific rate of return.
Ignore Present Value
A decision to not consider the current worth of future cash flows or payments, often applied in financial analysis.
Average Rate of Return
A financial ratio used to estimate the profitability of an investment, calculated as the net profit divided by the initial cost of investment.
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