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Discounted Payback
A capital budgeting method that calculates the amount of time needed to recoup an investment based on its discounted cash flows.
Profitability Index
A calculation used to assess the desirability of an investment, defined as present value of future cash flows divided by initial investment.
Net Present Value
Net Present Value (NPV) is a financial measurement that calculates the current value of expected future cash flows from an investment, adjusted for time and interest.
Average Accounting Return
A financial ratio that calculates the average annual income from an investment compared to its initial cost.
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