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According to the idiosyncrasy model,group members evaluate other members in terms of:
Initial Outflow
The initial cash expenditure required to undertake an investment or project.
Average Accounting Return
A measure of investment profitability calculated as the average annual net earnings of a project divided by the average investment in the project.
Straight-Line Method
An accounting method for allocating the cost of an asset evenly over its useful life.
Cost of Capital
The obligatory profit percentage a corporation needs to achieve on its investments to keep its market share and attract investors.
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