Examlex
Which of the following terms best describes the process that occurs when two or more parties decide how to allocate scarce resources?
Investment
The act of allocating resources, typically money, with the expectation of generating an income or profit.
Opportunity Cost of Capital
The return foregone by investing in a project instead of in comparable financial assets with similar risk.
Net Present Value
Net Present Value (NPV) is a financial metric that calculates the present value of all future cash flows (positive and negative) expected from an investment, adjusted for time and interest.
Profits
The financial gain achieved when the revenues from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.
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