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My friend Charles noticed that one of his students came to class every day with two cups of coffee
From a well-known coffee chain that isn't exactly famous for their low prices. He asked her if she'd
Ever thought about how much she spent on that coffee over the course of a year; not surprisingly,
She had not. If she paid $2.75 per cup for that coffee every day, how much would she spend on
Coffee in a year?
NPV Rule
The principle that an investment is considered acceptable if its net present value (NPV) is positive, under the context of discounted cash flow analysis.
Decision-Maker
An individual or group responsible for making choices that will impact themselves or others, often involving allocation of resources or resolutions in the face of challenges.
Zero NPV
A scenario in which the net present value of a project or investment is zero, indicating that the projected cash flows exactly discount the initial investment, showing neither a loss nor a gain.
Multiple IRRs
A phenomenon that occurs when there is more than one internal rate of return for a project due to changing cash flow signs over the project's lifetime.
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