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Net Present Value Method
A method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.
Time Value of Money Concept
The principle that a dollar today is worth more than a dollar in the future due to its potential earning capacity.
Capital Investment Analysis
The process of evaluating and comparing potential investments or projects based on their expected returns and risks to choose the most beneficial.
Sunk Costs
Sunk costs refer to money that has already been spent and cannot be recovered, a concept that emphasizes that such costs should not affect future business decisions.
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