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Capital Budgeting Techniques
Methods used by companies to evaluate the profitability and financial feasibility of investment projects.
Incremental Cash Flows
The additional cash flow a project generates over the basic operation cash flows, used to analyze the profitability of a potential investment.
Replacement Project
A replacement project involves investing in new assets to replace old, inefficient, or obsolete ones to maintain or improve operational efficiency.
Operating
Pertaining to the day-to-day operations of a company or organization, involving processes that contribute to the production of goods or services.
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