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Average Rate of Return
A financial ratio used to measure the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.
Cash Payback Period
The time period required for the cash inflows from a capital investment project to cover the initial cash outlay.
Net Cash Inflow
The surplus of cash revenues over cash expenses in a given period, indicating the liquidity added to an entity.
Useful Life
The estimated duration for which an asset is expected to be functional and economically feasible for its intended purpose.
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