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Capital-Budgeting
The process by which organizations evaluate potential major projects or investments to determine their cost-effectiveness and alignment with business strategy.
Risk-Free Rate
The hypothetical yield of a risk-free investment, typically mirrored by the interest rate on sovereign debt.
IRR Method
The Internal Rate of Return method, a capital budgeting technique used to evaluate the profitability of an investment or project.
Hurdle Rate
The minimum acceptable rate of return on an investment, used as a benchmark to determine the viability of the project or investment.
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