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Present Value Payback Period
A capital budgeting technique that calculates the period of time required for the present value of future cash flows to cover the initial investment cost.
NPV
Net Present Value, a calculation used to determine the current value of a series of future cash flows.
PI
The profitability index (PI), in financial management, is a method used to evaluate the desirability of an investment or project, calculating the ratio of the present value of future cash flows to the initial investment.
Cost of Capital
A financial metric representing the minimum return that a company must earn on its existing asset base to satisfy its creditors, owners, and other providers of capital.
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