Examlex
What are the five characteristics that make an asset suitable to be used as a medium of exchange?
Present Valued Dollar
The current value of a future sum of money or stream of cash flows given a specified rate of return.
Internal Rate of Return
A financial metric used to evaluate the profitability of potential investments, calculated as the rate of return that makes the net present value of all cash flows from a particular project equal to zero.
Reinvestment Assumption
The premise in finance that cash flows received from an investment will be reinvested at a certain rate, affecting future cash flows and the overall return.
Cost of Capital
The rate of return that capital could be expected to earn in an alternative investment of equal risk.
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