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Figure 10-16
-Refer to Figure 10-16. This graph shows the market for pollution when permits are issued to firms and traded in the marketplace. The equilibrium price of pollution is
Required Return
The basic annual percent yield needed to appeal to individuals or businesses for investment in a specific project or security.
Cash Flows
The gross flow of cash and assets equivalent to cash moving into and away from a business operation.
Payback Period
Payback period is the amount of time it takes for an investment to generate an amount of cash flow equal to the original investment amount.
Net Cash Inflows
The amount of cash that a business receives over a period, minus the amount of cash outflows.
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