Examlex
Please define the following key terms.
-Mohandas Gandhi
Cost of Capital
Cost of capital refers to the minimum rate of return a company must earn on its investments to satisfy its investors, creditors, and other providers of capital.
NPV
Net Present Value, a method for assessing the worth of a project or investment by applying a discount rate to future cash flows to ascertain their current value.
Crossover Rate
The rate at which two projects have the same net present value, used in capital budgeting to compare the attractiveness of different projects.
Mutually Exclusive
Mutually exclusive projects or events are those that cannot occur simultaneously; choosing one option means the other cannot be selected.
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