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Define the Relationship Between Benchmarks and Benchmarking

question 24

Essay

Define the relationship between benchmarks and benchmarking.


Definitions:

Payback Period

The duration of time it takes to recoup the initial investment in a project or asset.

Cash Inflows

Cash Inflows are the money or cash received by a business from its various activities, including sales, investments, financing, etc.

Profitability Index

A capital budgeting tool that measures the ratio of the present value of future cash flows generated by an investment to the initial investment cost, used to assess the profitability.

Required Rate Of Return

The minimum expected return on an investment necessary for an investor to consider it worthwhile.

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