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Required Rate
This is the minimum expected rate of return on an investment, dictating the least acceptable compensation for investing capital.
Salvage Value
A prediction of what an asset will be worth on the market at the close of its effective life.
Project Life
The duration from the initiation to the completion of a project, encompassing all stages of development, execution, and finalization.
Profitability Index
A ratio or index that measures the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
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