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Unweighted Aggregate Price Indices Account for Differences in the Magnitude

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Unweighted aggregate price indices account for differences in the magnitude of prices per unit and differences in the consumption levels of the items in the market basket.


Definitions:

Net Present Value

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows.

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