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Cost of Capital
The cost of funds used for financing a business, often considered as the required rate of return to make a capital budgeting project, such as building a new factory, worthwhile.
Net Present Value
A method used to evaluate the feasibility of a project or investment by calculating the difference between the present value of cash inflows and outflows over a period of time.
Feasible
Refers to an option or action that is possible or practicable within available resources and constraints.
Present Value
The present value of a sum of money or a series of cash flows expected in the future, determined using a particular rate of return.
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