Examlex
What do terrorism and crime have in common?
Profitability Index Rule
A capital budgeting technique used to decide whether to invest in a project, calculated as the present value of future cash flows divided by the initial investment cost.
Capital Budgeting Technique
Methods used by companies to evaluate and select investments in long-term assets based on their potential to generate cash flows in the future.
Profitability Index
A financial metric used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.
Payback Period
The duration required for an investment to generate cash flows sufficient to recover its initial cost.
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