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Describe how unions are formed.
Reinvestment Rate
The percentage rate at which future cash flows from an investment are assumed to be reinvested, affecting the calculation of metrics like Net Present Value (NPV).
NPV
Net Present Value; a calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.
IRR
Internal Rate of Return; a financial metric used to evaluate the profitability of potential investments by calculating the rate of return that makes the net present value of all cash flows equal to zero.
WACC
In calculating a firm’s capital costs, the Weighted Average Cost of Capital method considers the proportionate weights of different capital categories.
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