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Before agreeing to help out at the local homeless shelter,Sharon weighs the costs (e.g. ,getting up at dawn) and benefits (e.g. ,feeling good about herself) of doing so.This strategy can be predicted by the
WACC
The Weighted Average Cost of Capital represents a calculation of a company's capital costs, where each capital category is weighted in proportion to its total makeup.
NPV
Net Present Value (NPV) is a financial metric that calculates the present value of all cash flows, both incoming and outgoing, associated with a project or investment.
Cash Flow
The total amount of money being transferred into and out of a business, affecting its liquidity, solvency, and operational capabilities.
IRR
Internal Rate of Return, a financial metric used to estimate the profitability of potential investments.
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