Two Significant Changes in the Business World Have Occurred in the Last

question 32

Essay

Two significant changes in the business world have occurred in the last 15 years. What are they?

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Definitions:

Discount Rate

An interest rate used to discount future cash flows to their present value, often applied in capital budgeting and investment valuation.

Working Capital

A financial metric representing the difference between a company's current assets and current liabilities, indicating its short-term liquidity.

Salvage Value

The calculated leftover value of an asset at the expiry of its service life.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.