Examlex
Which of the following policies is the government most inclined to use when faced with a positive externality?
Net Present Value
A calculation used to estimate the value of an investment, adjusting for its cash inflows and outflows over time and discounting them to the present day.
Post Audit
A review conducted after the completion of a project or period to evaluate its compliance with projected outcomes and objectives.
Capital Budgeting
It is the process of evaluating and selecting long-term investments that are in line with the goal of shareholders' wealth maximization.
Simple Rate of Return
A financial metric calculating the increase in cash flow an investment generates, compared to its initial cost, not accounting for time value of money.
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