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Risk Averse
A description of an investor's preference for lower risk, opting for surety over a gamble with potentially higher returns but higher uncertainty.
Cash Flow
The net amount of cash and cash-equivalents being transferred into and out of a business, critical for daily operations, taxes, purchasing inventory, and paying employees.
Probability
A measure of the likelihood that a specific event will occur.
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.
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