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Convergent evolution occurs when
Compound Interest
Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
Cash Payback Period
The length of time required for an investment to generate cash flows sufficient to recover the initial outlay.
Present Value Factors
The numerical values used to calculate the present value of future cash flows, based on a specific discount rate.
Desired Rate of Return
The minimum rate of return on an investment that an investor considers acceptable, given its risk and alternative options.
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