Examlex
If a column shows the numbers 1, 2, and 3 as well as the SUM equaling 6, the number 6 is a ____.
Payback Method
A capital budgeting technique that calculates the time required for an investment to generate cash flows sufficient to recover its initial cost.
Time Value of Money
The principle that holding money now is more valuable than possessing the same sum at a later date because of its current potential to generate earnings.
Discount Rate
The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.
Net Present Value
An evaluation metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
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