Examlex
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Project Profitability Index
The ratio of the net present value of a project’s cash flows to the investment required.
Net Present Values
refers to the calculation that determines the present value of a series of future cash flows by discounting them at a certain rate, often used for assessing the profitability of investments.
Incremental Cost Approach
An analysis method that evaluates the additional costs of making decisions, comparing the costs that change with the decision versus those that do not change.
Purchase Cost
The amount paid to buy goods, materials, or assets.
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