Examlex
Firn consists of ____________.
Certainty Equivalent Factors
Refers to adjustments made to uncertain (risky) cash flows to equate them to certain cash flows, used in investment decision-making.
Risk Adjusted Discount Rate
A rate used in capital budgeting that adjusts for the risk of cash flows, providing a way to account for the riskiness of the project.
NPV
Net Present Value (NPV) is a financial metric used to assess the profitability of an investment, calculating the difference between the present value of cash inflows and outflows over a period of time.
IRR
The Internal Rate of Return is a financial measurement employed to gauge the potential profit of investments.
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