Examlex
Match the term on the left to its corresponding definition on the right.
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NPV
Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.
Cost Of Capital
The essential yield required to justify proceeding with a capital expenditure venture, such as the erection of a new plant.
Cash Flow
The net amount of cash being transferred into and out of a business, influencing its liquidity, investment, and operational strategies.
Equivalent Annual Annuity
A method used in financial analysis to compare the profitability of investments with differing durations by converting values into equal annual payments.
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