Examlex
Instructions: Identify the following. Be as specific as possible, and include names, dates, and relevant facts as appropriate. Be sure to explain the significance of the person or term.
Tea Act of 1773, Boston Tea Party
Internal Rate of Return
A financial metric used to estimate the profitability of potential investments, calculating the discount rate that makes the net present value of all cash flows from the investment equal to zero.
Present Value
The present value of a future amount of money or a series of cash flows, calculated using a given interest rate.
Annuity
A finance-related product designed to issue a predetermined series of payouts to an individual, typically aimed at serving as an income source for retirement.
Net Present Value
A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time, used in capital budgeting to assess profitability of investments.
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