Examlex
Identify and state the historical significance of the following:
-Harry M. Daugherty
Simple Rate of Return
A financial metric that measures the efficiency of an investment as the annual income divided by the initial investment cost.
Time Value of Money
The principle that a sum of money is worth more now than the same sum in the future due to its potential earning capacity.
Payback Method
A method of investment appraisal that calculates the time required for the cash inflows from a project to repay its initial investment cost.
Capital Budgeting
The process of planning and managing a company’s long-term investments in major projects or assets, evaluating profitability and risks.
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