Examlex
The three tools used repeatedly in microeconomic analysis are:
Discount Rate
The interest rate used to discount future cash flows to their present value, commonly used in capital budgeting and investment planning.
IRR
Internal Rate of Return is a financial measure used to calculate the expected profitability of prospective investments.
NPV
Net Present Value, a method used in capital budgeting to analyze the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.
Internal Rate of Return
A metric used in capital budgeting to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows zero.
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