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Net Present Value
Net present value is a financial calculation that determines the worth of a project or investment by discounting its future cash flows to the present value using a specific discount rate, to assess its profitability.
Present Value Factor
A coefficient used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.
Cash Flows
The net amount of cash being transferred into and out of a business, illustrating its ability to generate and use cash.
Incremental Analysis
An examination of the additional benefits and costs of certain business decisions.
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