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Time Value
The concept that money available today is worth more than the same amount in the future due to its potential earning capacity.
Payback Period
The time it takes for an investment to generate income or revenue equal to its cost, used to assess the feasibility or risk of an investment.
Cash Flows
The net amount of cash being transferred into and out of a business.
Internal Rate
The interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equals zero, used in capital budgeting to measure and compare the profitability of investments.
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