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Present Value Factor
A coefficient used to calculate the present value of a future amount of money or stream of cash flows given a specific rate of return.
Cash Flows
The net amount of cash being transferred into and out of a business, illustrating its ability to generate and use cash.
Incremental Analysis
An examination of the additional benefits and costs of certain business decisions.
Fixed Overhead
Regular, unchanged costs incurred by a business in its operation, such as rent, salaries, and utilities, which do not vary with the level of production or sales.
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