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Investment in Equipment
The total capital expenditure on physical assets like machinery and equipment intended for the production of goods or services.
Payback Method
A basic investment appraisal technique that calculates the time required to recoup the cost of an investment.
Time Value of Money
The concept that money available now is worth more than the same amount in the future due to its potential earning capacity.
Capital Budgeting
The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.
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