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According to the Grand Strategy Matrix, when a Quadrant I firm is too heavily committed to a single product, then related diversification may reduce the risks associated with a narrow product line.
Future Cash Flow
Projected cash receipts and disbursements over a future period, indicating the amount of money expected to flow in and out of the business.
Present Value
The contemporary valuation of a future money sum or ongoing cash flows, factoring in a defined interest rate.
Rate of Return
The percentage of profit or loss on an investment over a period.
Guaranteed Rate
A promised or assured rate of return on an investment or loan.
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