Examlex
A business buyer's purchase process ends with:
IRR
The Internal Rate of Return is a financial metric used to estimate the profitability of potential investments, calculated as the rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
NPV
Net Present Value; a financial metric used to evaluate the profitability of an investment, calculated by subtracting the initial investment from the present value of cash inflows.
AAR
Average Annual Return; calculating the mean annual return of an investment over a specified time period.
Discounted Payback
An investment appraisal method that calculates the time required to break even in present value terms, factoring in the time value of money.
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