Examlex
Which decision model incorporates the process of optimization?
Net Present Value
The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used for analyzing the profitability of investments or projects.
Discount Rate
The interest rate used in discounted cash flow (DCF) analyses to determine the present value of future cash flows.
Simple Rate
An interest calculation method where the interest charge is calculated only on the principal amount, without compounding.
Net Operating Income
A company's income after operating expenses have been subtracted but before income taxes and interest are deducted.
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