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In a contingency table, the expected frequency of any given cell is represented by this formula:
Profitability Index
A financial metric used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.
Present Value
A calculation that determines the current value of a future amount of money or stream of cash flows given a specified rate of return.
Cash Inflows
Money received by a business from its operational activities, investments, or financing.
Salvage Value
Salvage value refers to the expected value an asset will have when it's no longer useful, essentially its end-of-life resale value.
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