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In order to assess causality, three important criteria must be met. Please list and describe each of these.
Net Present Value
The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.
Compound Interest
This refers to the calculation of interest on both the initial amount deposited or borrowed as well as on the interest that has already been accumulated over previous periods.
Desired Rate of Return
The minimum percentage of gain or profit expected by an investor from an investment.
Compound Interest
Interest earning mechanism in which the calculation includes interest on the original principal and on all previously earned interest of a loan or deposit.
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