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Average Accounting Rate of Return
A financial ratio indicating the average annual profit earned through an investment, compared to the initial investment cost.
Crossover Rate
The discount rate at which two investment projects have the same Net Present Value (NPV), often used in capital budgeting.
Projects
Specific tasks or initiatives undertaken to achieve a particular goal, often requiring a significant amount of planning and work.
IRR Cross-Over Rate
The rate at which two projects have the same net present value (NPV) when considering their internal rate of return (IRR), used to choose between competing projects.
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