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The Emerson enhancement effect
Net Present Value
The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of an investment.
Initial Cost
The upfront expenditure involved in the purchase of an asset or the start of a project.
Capital Budgeting
The process by which a business evaluates and plans for significant investments in projects or assets.
Useful Life
The estimated duration of time over which an asset is expected to be usable by its owner for its intended purpose.
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