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Capital Budgeting Analysis
The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.
Payback
A capital budgeting method that calculates the length of time required to recoup the original investment.
IRR
A financial metric, the Internal Rate of Return evaluates the potential profitability of investments.
NPV
A financial analysis method that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the worth of investments or projects.
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