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Rubin writes a check drawn on his account at Clearwater Bank and payable to the order of Gwyn. The bank does not pay the check. Rubin is
Cash Flow
The net amount of cash and cash-equivalents being transferred into and out of a business, critical for daily operations, taxes, purchasing inventory, and paying employees.
Probability
A measure of the likelihood that a specific event will occur.
Capital Budgeting
The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.
Cost of Capital
The rate of return that a business must earn on its investment projects to increase or maintain its value, encompassing the cost of debt and equity.
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