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Straight-Line Depreciation
A method of allocating the cost of a fixed asset evenly across its useful life.
Internal Rate of Return
A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.
Present Value
A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.
Annual Cash Flows
The total amount of money being transferred into and out of a business over one year, considered in terms of liquidity and financial health.
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