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Name Five Examples of Finance/accounting Decisions That May Require Policies

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Name five examples of finance/accounting decisions that may require policies.


Definitions:

WACC

The Weighted Average Cost of Capital represents a calculation of a company's capital costs, where each capital category is weighted in proportion to its total makeup.

NPV

Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows, both incoming and outgoing, associated with a project or investment.

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity, solvency, and operational capabilities.

IRR

Internal Rate of Return, a financial metric used to estimate the profitability of potential investments.

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