Examlex
Average Accounting Return
A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.
Straight-Line Method
An accounting method for allocating the cost of an asset evenly over its useful life.
Cost of Capital
The obligatory profit percentage a corporation needs to achieve on its investments to keep its market share and attract investors.
IRR
Internal Rate of Return; a financial metric used to evaluate the profitability of investments, representing the discount rate that makes the net present value (NPV) of all cash flows equal to zero.
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