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Instructions: Identify the Following

question 62

Short Answer

Instructions: Identify the following. Be as specific as possible, and include names, dates, and relevant facts as appropriate. Be sure to explain the significance of the person or term.
Empresarios


Definitions:

Net Present Value

Net present value (NPV) is the calculation used to find today’s value of a future stream of payments and earnings, accounting for the time value of money.

Cost of Capital

The return rate that a company must achieve in order to compensate its investors for the risk of the investment, including the cost of equity and debt.

Industrial Furnace

A device used in manufacturing to provide high temperatures for processes such as melting metals or chemical reactions.

Real Option

The right, but not the obligation, to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a project.

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