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If the price elasticity of demand is found to be 6,then demand is:
Required Return
The minimum rate of return needed on an investment, determined by the investor’s risk tolerance and the investment’s risk.
NPV
Net Present Value; a calculation used to determine the present value of an investment by discounting its future cash flows.
Initial Investment
The amount of money used to start a new project, purchase an asset, or invest in the market at the initiation phase.
Payback Period
The amount of time it takes to recover the cost of an investment, calculating how long it will take to break even from the initial expenditures.
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