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The selling price of a widget is $15 and the fixed cost per month is $4,800. The variable cost per widget is $9. Calculate the net income on revenue of $10,000 per month.
Risk Adjustment
A process used in finance and insurance to modify predictions or values based on known risks or uncertainties to make them more accurate or representative.
Net Present Value
A financial metric used to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows over a period of time.
Internal Rate of Return
The discount rate at which the net present value of an investment's cash flows equals zero, used as a metric to evaluate the profitability of potential investments.
Interest Rates
The cost of borrowing money or the return earned from lending money, typically expressed as a percentage of the principal.
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