Examlex
What makes up the 3C assessment?
Capital Budgeting
The process by which a business evaluates and selects long-term investments that are expected to yield returns that exceed the costs of financing.
Discount Rate
The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows, reflecting the time value of money and investment risk.
Option to Abandon
A strategic financial decision allowing a company to cease an investment or project, thereby limiting its losses.
Initial Cost
The initial expenditure required to acquire an asset or start a project, including the purchase price and setup costs.
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