Examlex
In the figure below, what type of relationship do the relations depict?
Internal Rate of Return
A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows zero.
Required Return
The minimum return an investor expects to achieve on an investment, considering the investment's risk level.
NPV
or Net Present Value, is a financial metric used to evaluate the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.
Net Present Value
Calculating the variance between the present-day value of cash flows in and out over an established timeframe.
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