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Match the Following: -Cognition

question 39

Multiple Choice

Match the following:
-Cognition


Definitions:

Equivalent Annual Cost

A financial analysis tool used to compare the annual costs of alternatives with different lifespans to assess which is more cost-effective.

Internal Rate of Return

A financial metric used to estimate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows equal to zero.

Erosion

In finance, erosion refers to the gradual reduction of assets, earnings, or investment value over time.

Future Cash Flows

Predicted income or expenses expected to be generated or incurred in the future.

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