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Decision makers must frequently make a difficult tradeoff between speed and accuracy.
Annual Depreciation
The annual expense taken for a fixed asset, representing a fraction of its cost spread over its lifespan.
Useful Life
The estimated duration of time that an asset is expected to be usable for its intended purpose, affecting depreciation calculations.
Salvage Value
The conjectured remaining value of an asset at the close of its functional lifetime.
Discount Rate
This refers to the interest rate employed in DCF calculations to figure out the present value of upcoming cash flows.
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