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Describe how the treadmill of consumption works, with examples?
Earnings Rate
The rate at which a company generates income relative to assets, investments, or equity.
Internal Rate of Return
A metric used in financial analysis to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.
Compound Interest
A way of calculating interest whereby the charge is based on the initial principal amount as well as on the interest that has accumulated in prior periods of a loan or deposit.
Cash Inflow
Money received by a business, typically from operational, investing, and financing activities.
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