Examlex
Instructions: Identify the terms and briefly state their historical significance.
Sadi's Rose Garden
Profitability Index
A calculation used to assess the attractiveness of an investment, calculated as the present value of future cash flows divided by the initial investment.
Independent Project
A project that can be pursued without affecting the acceptance or funding of other projects, allowing for standalone consideration in decision-making.
Net Present Value
The contrast in the present value of money received and the present value of money spent over a designated duration, applied in capital budgeting to appraise the profitability of a potential investment.
Cash Inflows
Refers to the money received by a business from its various activities, including sales, investments, financing, etc.
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