Figure 39.4
Which of the following part for:
-Stomach
Definitions:
Profitability Index
A calculation used to determine the relative profitability of a project by dividing the present value of future expected cash flows by the initial investment.
Present Value
The current worth of a future sum of money or cash flows, given a specified rate of return.
Internal Rate Of Return
The percentage rate that equalizes the net present value of a project's cash flows to zero.
Mutually Exclusive Projects
Investment projects where the acceptance of one negates the possibility of accepting another.
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