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Discount Rate
The interest rate used in discounted cash flow analysis to present future cash flows in terms of their present value, important in investment and financial decision-making.
Internal Rate
is often a shortened form referring to the Internal Rate of Return (IRR), which estimates the profitability of potential investments.
Net Present Value
A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time to evaluate the profitability of an investment.
Preference Decision
A decision in which the acceptable alternatives must be ranked.
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