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Internal Rate of Return
A financial metric used to evaluate the profitability of potential investments, representing the annual return rate that makes the net present value of cash flows from a potential investment equal to zero.
Capital Budgeting
The process businesses use to evaluate and select long-term investments that are expected to yield the most beneficial returns.
Widely Used
A term describing something that is extensively accepted or employed by a large number of people or in various areas.
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment by determining the difference between the present value of cash inflows and outflows.
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