Examlex
An externality refers to economic events outside a market.
Payback Period
The length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash flow.
Cash Flows
The total amount of money being transferred into and out of a business, affecting the company's liquidity.
Internal Rate
The rate of return that makes the net present value (NPV) of all cash flows from a particular project equal to zero, often used in capital budgeting to assess potential investments.
Cash Flows
The entire sum of money flowing in and out of an enterprise, notably affecting its ability to meet short-term obligations.
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