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Internal Rate
Often referenced in the context of the internal rate of return (IRR), it is a metric used in capital budgeting to estimate the profitability of potential investments.
Investment Project
An undertaking requiring capital investments with the goal of generating future returns or benefits.
Salvage Value
The estimated residual value of an asset at the end of its useful life.
Capital Budgeting
The process of planning significant investments in projects that have long-term implications such as the purchase of new equipment or the introduction of a new product.
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