Examlex
All agency agreements must be in writing.
Payback Method
An investment appraisal technique that calculates the time needed for an investment to generate cash flows sufficient to recover the initial cost.
Weighted Average Cost of Capital (WACC)
A calculation of a company's cost of capital in which each category of capital (debt, equity) is proportionally weighted.
Internal Rate of Return (IRR)
IRR is a financial metric used to estimate the profitability of investments, calculated as the rate of return that sets the net present value of all cash flows from a particular project to zero.
Payback Period
The duration required for an investment to recover its initial outlay, calculated by dividing the initial investment by the annual cash inflows.
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