Examlex
Please define the following key terms. Show Who? What? Where? When? Why Important?
-Livia
NPV
Net Present Value; the calculation of the present value of cash inflows minus the present value of cash outflows over a period.
Cash Flows
The movement of money into and out of a business, representing its operating, investing, and financing activities.
WACC
Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including debt, equity, and any other long-term debt.
Reinvestment
The process of using dividends, interest, or any other form of income generated by an investment to purchase additional shares or units of that investment.
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