Examlex
You find that your paycheck for the year is higher this year than last. Does that mean that your real income has increased? Explain carefully.
Net Present Value
A calculation that compares the value of a dollar today to the value of that same dollar in the future, considering inflation and returns, used to evaluate investments.
IRR
Internal Rate of Return; a financial metric used to gauge the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.
Cost of Capital
The rate of return a company must earn on its investment projects to maintain its market value and attract funds.
Profit Margin
A financial measurement that calculates the percentage of profit a company makes from its total revenue.
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