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Straight-Line Depreciation
An accounting method that allocates the cost of a tangible asset evenly over its useful life.
Variable Cost
Outlays that shift in alignment with the quantity of output generated.
Discount Rate
The interest rate used to discount future cash flows of a financial instrument back to their present value, thus reflecting the cost of capital.
Initial Cost
The upfront expense incurred to purchase an asset or start a project, including all relevant expenses.
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