Examlex
Match the person or term with the with the correct description.
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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.
NPV
Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project, calculating the difference between the present value of cash inflows and outflows.
Required Return
Required return is the minimum profit or gain needed from an investment to make it worthwhile, considering the risk involved and the opportunity cost of forgoing other investments.
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