Examlex
What components are commonly found in a firewall?
NPV
Net Present Value represents the discrepancy between the current value of cash inflows and outflows throughout a specific timeframe, utilized in capital budgeting to evaluate an investment's profitability.
PI
Profitability Index (PI) is a ratio that calculates the relationship between the benefits of a project or investment and its costs, helping to determine its attractiveness.
IRR
Internal Rate of Return, a financial metric used to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.
Required Rate of Return
The minimum annual percentage return that an investor expects to achieve when investing in a particular asset or project.
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