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Watson believed that
Discounted Cash Flow
Discounted cash flow is a valuation method used to estimate the attractiveness of an investment opportunity based on its expected future cash flows.
Annual Rate of Return
The ratio of gain or loss on an investment across a span of one year, expressed as a percentage.
Incremental Analysis
An examination of the additional benefits and costs of certain business decisions, focusing on the changes from the current state.
Opportunity Cost
The cost of foregoing the next best alternative when making a decision, representing the benefits one could have received by choosing a different option.
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