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Required Return
The minimum expected rate of return on an investment deemed acceptable to an investor, taking into account the risk level of the investment.
Payback Period
The length of time it takes for an investment to generate an amount of cash flow equal to the initial amount invested.
NPV
Net Present Value, a financial metric used to evaluate the profitability of an investment or project, calculated by discounting the expected future cash flows to present day values and subtracting the initial investment cost.
Discounted Payback Period
The time required to recoup the cost of an investment while accounting for the time value of money, typically used in capital budgeting to assess profitability.
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