Examlex
In activity-based costing, product costs are assigned based on links between activities that drive costs and the _____.
NPV
Net Present Value; a method used in capital budgeting to assess the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment.
IRR
The Internal Rate of Return, a financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows equal to zero.
NPV Profiles
Graphs that show the relationship between a project's NPV and various discount rates, used to analyze the sensitivity of a project's value to changes in the cost of capital.
Crossover Rate
The rate at which the net present values of two projects are equal, often used in capital budgeting to compare projects.
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