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When ending a relationship,the most important thing to remember is:
Cost of Capital
The rate of return that a business needs to generate in order to cover the cost of generating new capital, which can include debt and equity.
NPV
Net Present Value (NPV) is the calculation used to find the present value of cash flows at a specific discount rate, often used to assess the profitability of an investment.
Payback Period
The amount of time it takes for an investment to generate an amount of income or cash flows to recover the initial capital outlay.
Cash Flows
The net amount of cash and cash-equivalents being transferred into and out of a business, measuring financial health.
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