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Match the person or term with the with the correct description.
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Payback Period
The payback period is the length of time required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.
Discounted Payback
A capital budgeting method that calculates the time needed to recoup investment costs, taking the time value of money into account.
Positive Cash Flows
The situation where a company's cash inflows exceed its cash outflows, indicating financial strength and the ability to finance operations, debt, and investments.
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