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How can a manager calculate the opportunity cost of capital for a project?
After-Tax Discount Rate
A rate used in financial analysis that takes into account the effect of taxes on the discount rate used for present value calculations.
Income Tax Rate
The fraction of salary that goes to the government in the form of taxes.
Straight-Line Depreciation
A method of calculating the depreciation of an asset, distributing its cost evenly across its useful life.
Initial Investments
The initial amount of money required to start a project, acquisition, or investment, often encompassing startup costs or purchase price.
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