Examlex
How is NNP calculated?
Operating Costs
Expenses associated with the day-to-day functions of a business, excluding costs related to the production of goods.
Useful Life
The estimated time period that an asset is expected to be operational and economically useful to the owner.
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment or project, calculated by discounting future cash flows to their present value and subtracting the initial investment cost.
Working Capital
The difference between a company's current assets and current liabilities, indicating its short-term liquidity.
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