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Erik is the president and owner of Watch Out, a local website development company that helps clients create and build unique websites. Many of his daily tasks are heavily technical in nature and require a high level of computer programming and Internet knowledge. Which of the below would Erik primarily use when performing his daily tasks?
Net Present Value
A method of evaluating investments by calculating the present value of future cash flows minus the initial investment cost, used to assess the profitability of an investment.
Cash Inflows
Money received by a business from its operational, investment, and financing activities.
Internal Rate
Often related to the internal rate of return (IRR), it's a metric used in financial analysis to estimate the profitability of potential investments.
Time Value
The theory that money today is more valuable than the same quantity in the future, due to its potential to accumulate additional value.
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