Examlex
What theory best explains Dave's delinquent behavior?
PI
Profitability Index (PI) is a ratio that calculates the relationship between the benefits of a project or investment and its costs, helping to determine its attractiveness.
IRR
Internal Rate of Return, a financial metric used to estimate the profitability of potential investments, calculating the interest rate at which the net present value of all cash flows (both positive and negative) from a project or investment equals zero.
Required Rate of Return
The minimum annual percentage return that an investor expects to achieve when investing in a particular asset or project.
NPV
Net Present Value, a financial metric used to assess the profitability of an investment, calculated as the difference between the present value of cash inflows and outflows.
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