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Internal Rate
Often referring to the internal rate of return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
Capital Investment
Funds spent by a company to acquire or upgrade physical assets to further its long-term goals and operations.
Present Value
The value of a future amount of money in today's dollars, calculated by applying a discount rate to account for the time value of money.
Net Present Value
The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting to assess the profitability of investments.
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