Examlex
Fill in the correct labels for the following figure using the word bank below.
-H _______________
Profitability Index
A calculation used to determine the relative profitability of an investment, defined as the present value of future cash flows divided by the initial investment cost.
Discount Rate
The discount rate used in DCF method to establish the current worth of future financial flows.
Independent Projects
Investment projects that do not affect the cash flows or feasibility of other projects under consideration.
Profitability Index
A financial metric used to evaluate the potential profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
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