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Capital Asset
A long-term asset that is not purchased or sold in the normal course of business but is used to generate wealth through investment or appreciation.
Tax Rate
The percentage at which an individual or corporation is taxed; the tax liability as a percentage of annual income.
Terminal Value Assumptions
The assumptions made about the value of a business or project beyond the forecast period when estimating its future cash flows for valuation purposes.
Capital Budgeting
The process through which a company evaluates and selects long-term investments that are consistent with its goal of maximizing shareholder value.
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