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Discount Rate
The interest rate used to discount future cash flows to their present value, often relevant in investment and finance decisions.
Capital Budgeting
The process by which a business evaluates and selects major capital investments based on their potential to generate additional revenue or reduce costs.
Simple Rate of Return
A method to evaluate the profitability of an investment by dividing the annual incremental net operating income by the initial investment cost.
Operating Expenses
Costs associated with a company’s operational activities, excluding direct labor and materials, that are necessary to run the business.
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