Examlex
The two parts of the CPU are
Useful Life
The estimated duration of time an asset is expected to be usable for its intended purpose.
Residual Value
The estimated value that an asset will have at the end of its useful life, after it has been depreciated.
Present Value
The current value of future monetary amounts or sequences of cash inflows, factoring in a specific rate of interest.
Annuity
A monetary tool that issues a predetermined sequence of payments to someone, commonly used to generate an income for those who have retired.
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