Examlex
Which of the following statements has primarily cognitive meaning?
Profitability Index
A ratio that calculates the relative profitability of an investment by dividing the present value of future expected cash flows by the initial investment cost.
Initial Investment
The amount of money used to start a project, investment, or business.
Cash Inflows
Funds entering a business from various sources, including sales, investments, and financing activities, critical for maintaining liquidity.
Payback Period
The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.
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