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What is meant by the term "long-run competitive equilibrium"?
Required Return
The minimum amount of profit an investor expects to receive on an investment, accounting for various levels of risk.
Straight-Line Depreciation
A method of calculating the depreciation of an asset, which allocates an equal amount of depreciation each year over the asset's useful life.
Salvage Value
The forecasted salvage value of an asset when it's no longer useful, applied in determining depreciation amounts.
Accounting Rate
The interest rate used in the process of accounting, particularly in discounting cash flows, which can affect the calculation of net present value or internal rate of return.
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