Examlex
Which of the following is an amenities rate fence?
Time Value
A financial principle acknowledging that receiving money now is more advantageous than receiving the same amount in the future due to its earning potential.
Payback Method
A capital budgeting technique that calculates the time required to recoup the initial investment through cash inflows.
Accounting Rate
Often refers to the accounting rate of return (ARR), a financial ratio used to measure the profitability of an investment, calculated by dividing the average annual profit by the initial investment cost.
Investment Allowance
A tax benefit that allows businesses to deduct a percentage of certain capital expenditures from their taxable income.
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