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To internalize an externality, a corrective tax must be set equal to the marginal external cost.
Cash Flows
Cash flows describe the total net cash and equivalents moving into and exiting a company.
Rate of Return
The positive or negative change in an investment's value over a determined period, indicated as a percentage of the investment’s buying price.
Sole Shareholder
An individual or entity that owns 100% of the shares of a company, holding complete ownership.
Annual Percentage Rate
The annual rate charged for borrowing or earned through an investment, which includes all fees and costs.
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