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Let and be two non-zero parallel vectors.Then .
Conventional Cash Flows
Conventional Cash Flows refer to a pattern of cash flows where an initial investment is followed by a series of positive cash inflows, typical of most investment projects.
Net Present Value
A financial metric that calculates the present value of all cash inflows and outflows associated with an investment, considering the time value of money.
Capital Budgeting
The process by which investors determine the value of potential investments or projects by assessing the cash inflows and outflows associated with them.
Conventional Cash Flows
A series of inward and outward cash flows over time where there is typically one initial outflow followed by several inflowing cash amounts.
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