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Helen ties a frilly blue bow around the neck of her husband's bulldog, Bruiser. When her husband sees Bruiser trying to take the bow off, he explains to his wife that Bruiser is embarrassed to be seen wearing "the frilly little bow." Her husband's comment illustrates the
Internal Rate of Return
A metric used in financial analysis 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.
Compound Interest
A way of calculating interest whereby the charge is based on the initial principal amount as well as on the interest that has accumulated in prior periods of a loan or deposit.
Cash Inflow
Money received by a business, typically from operational, investing, and financing activities.
Net Present Value
The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.
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