Examlex
Which of the following would be subtracted from net income on a statement of cash flows prepared by the indirect method?
Required Rate of Return
The minimum return an investor expects to achieve by investing in a particular asset or project, considering the risk involved.
Net Present Value
A method in capital budgeting that calculates the present value of cash flows generated over a project's life, subtracting the initial investment.
Payback Technique
A method of investment appraisal that calculates the time required to recoup the cost of an investment.
Internal Rate of Return
A financial metric used to evaluate the profitability of an investment, representing the interest rate at which the net present value of costs and benefits of the investment are equal.
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