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The Use of Debt in a fiRm's Capital Structure Is

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The use of debt in a firm's capital structure is called:


Definitions:

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows, both incoming and outgoing, associated with a project or investment.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, solvency, and operational capabilities.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments.

Cash Flow

The total amount of money being transferred in and out of a business, particularly in handling its operational activities and investments.

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