Examlex
Externalities affect the welfare of others not involved in the production or consumption of a good or service in ways that markets don't take into account.
Compounded Monthly
Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.
Present Value
The calculation that determines the worth of a future amount of money or series of cash flows at the present time, factoring in a specific interest rate.
Discount Rate
The interest rate applied for calculating the present worth of anticipated cash flows in future during the discounted cash flow analysis process.
Compounded Monthly
Interest calculation method where the interest earned each month is added to the principal, thus increasing the amount of subsequent interest accrued.
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