Examlex
Use the following figure to answer the questions below.
-What is the function of the structure labelled E?
Net Present Value
The difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Discount Rate
Within discounted cash flow analysis, it's the interest rate applied to derive the present value of cash flows expected in the future.
Profitability Index
A financial tool used to measure the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
Cash Inflows
Cash inflows are the money received by a business from its various activities, such as sales revenues, financing, and investments.
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