Examlex
Under the temporal rate method, specific assets and liabilities are translated at exchange rates consistent with the timing of the item's creation.
Discount Rate
The discount rate applied in the discounted cash flow method to calculate the current value of anticipated cash flows.
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 over a period of time.
Profitability Index
A capital budgeting tool that measures the relative profitability of an investment by dividing the present value of its future cash flows by the initial investment cost.
Present Value
The present value of a future amount of money or series of cash flows, based on a given return rate.
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