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Required Rate of Return
The minimum annual percentage return that an investor expects to achieve when investing in a particular asset or project.
NPV
Net Present Value, a financial metric used to assess the profitability of an investment, calculated as the difference between the present value of cash inflows and outflows.
IRR
Internal Rate of Return is a financial metric used to evaluate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows from a particular project equal to zero.
Mutually Exclusive
Describes options or projects that cannot both be chosen such that if one is selected, the other must be rejected.
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