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AAR
Average Annual Return, which measures the average return generated by an investment per year over a specified period.
NPV
Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.
Discounted Payback Period
The time it takes for an investment to generate cash flows to recover its initial cost, accounting for the time value of money.
Cash Inflows
The total amount of money being transferred into a business, project, or financial product, typically measured within a specific period.
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