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Friendship rules are almost always explicit, rather than implicit.
Replacement Chain
A decision analysis tool used to choose between mutually exclusive projects with differing durations by comparing the equivalent annual annuity.
Equivalent Annual Annuity
A financial calculus method for comparing the annualized cash flows of projects with different lifespans.
Initial Outlays
The initial investments or costs incurred when starting a project, business, or investment.
Net Present Value
A financial measure that assesses an investment's profitability by calculating the difference between the present value of cash inflows and the present value of cash outflows throughout a certain timeframe.
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